(TheNewswire)
June 23, 2025 TheNewswire – Vancouver, British Columbia Blue Lagoon Resources Inc. (the ‘ Company ‘) (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is pleased to announce that it has entered into a credit agreement with its toll milling partner, Nicola Mining Inc . providing the Company with a $2 million line of credit without any security against the Company’s mineral property or physical assets.
The facility, which carries a competitive interest rate linked to the 3-month SOFR (Secured Overnight Financing Rate), is repayable over a 12-month term with interest-only payments during the first eleven months. At the Company’s discretion, the loan can be extended for an additional 12 months, with adjusted terms.
Importantly, the loan is structured to allow maximum operational flexibility , with no requirement for project collateralization — underscoring Nicola’s confidence in the Dome Mountain Gold Project and its near-term production trajectory.
‘We’re extremely pleased to have the continued support of Nicola Mining, not only as our toll milling partner but also as a continued financial backer,’ said Rana Vig , President and CEO of Blue Lagoon. ‘This line of credit adds an extra layer of security to our already strong balance sheet and gives us added flexibility as we finalize preparations for gold production this summer. It’s a clear sign that sophisticated investors recognize the value of Dome Mountain and its cash flow potential.’
This agreement comes on the heels of Blue Lagoon’s recently completed financing, which was fully subscribed by long time existing shareholders that included Crescat Capital and Phoenix Gold fund as well as new strategic investors. The Company remains fully funded , with no short-term debt and over $3.6 million in in-the-money warrants , positioning it strongly as it enters the final phase of development.
While the Company may ultimately never need to draw on this facility, having access to it provides an important financial backstop. It ensures capital is available if needed to support production ramp-up, seize opportunity, or manage any unforeseen short-term needs – all without causing further dilution to existing shareholders.
Peter Espig , President and CEO of Nicola Mining, commented: ‘We’ve worked closely with the Blue Lagoon team for some time and continue to be impressed by their methodical and disciplined approach. Successfully navigating B.C.’s rigorous permitting process, while also building a strong, trust-based relationship with the Lake Babine Nation, speaks volumes about their leadership. We are pleased to provide this credit facility and look forward to supporting their transition to gold and silver production.’
If the Company chooses to access this facility, Nicola Mining will maintain a short-term security interest over the Company’s gold and silver production from the Dome Mountain Gold Project until the loan is repaid in full.
About Blue Lagoon Resources Inc.
Blue Lagoon Resources is a Canadian based publicly listed mining company (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) focused on building shareholder value through the aggressive development of its 100% owned Dome Mountain Gold project. The Company is run by professionals with significant finance and mining experience and operates within a prime mining jurisdiction in British Columbia, Canada. With the granting of a full mining permit, a key milestone achieved in February 2025 – one of only nine such permits issued in British Columbia since 2015 – Blue Lagoon is now focused on last preparatory activities and tasks related to the safe and secure opening of the Dome Mountain Gold Mine, targeting Q3 2025 as the start of gold production . The Company’s primary objective has always been to become a cash-flowing mining company, to ultimately deliver tangible monetary value to shareholders, state, and local communities.
The Company is not basing its production decision at Dome Mountain on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource. The Company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study.
For further information, please contact:
Rana Vig
President and CEO
Telephone: 604-218-4766
Email: ranavig@bluelagoonresources.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed ‘forward-looking statements’. All statements in this release, other than statements of historical facts, that address events or developments that Blue Lagoon Resources Inc. (the ‘Company’) expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words ‘expects’, ‘targets’, ‘plans’, ‘anticipates’, ‘believes’, ‘intends’, ‘estimates’, ‘projects’, ‘potential’, ‘mine’, ‘production’ and similar expressions, or that events or conditions ‘will’, ‘would’, ‘may’, ‘could’ or ‘should’ occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to
differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration or future exploitation of minerals deposits, volatility of gold and silver prices, delays in mine development activities, future cash flow expectations and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management, contractors and consultants on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s, contractor’s and consultants’ beliefs, estimates or opinions, or other factors, should change.
Copyright (c) 2025 TheNewswire – All rights reserved.
News Provided by TheNewsWire via QuoteMedia