Nicola Mining (TSX-V:NIM) has made an additional C$5 million (5.1 million) investment in Blue Lagoon Resources (CSE:BLLG) as the latter ramps up production at its Dome Mountain Gold and Silver Project in British Columbia.
Through a private placement, Nicola purchased approximately 8.33 million Blue Lagoon shares at C$0.60 each, building on a C$1 million investment in January 2024 at C$0.14 per share.
The latest financing is expected to support the advancement of Dome Mountain towards its targeted production rate of 150-200 tonnes per day (tpd).
Located approximately 38km east of Smithers in northwestern BC, Dome Mountain is a small-scale underground mine that entered production in May 2025 at an initial rate of 100tpd. The operation has since ramped up to 125tpd.
“This investment reflects our confidence in both the quality of the Dome Mountain asset and Blue Lagoon’s management team’s ability to execute its production strategy,” Nicola Mining CEO Peter Espig says.
Ocean Partners investment
Dome Mountain ore is processed at Nicola’s Merritt Mill, with the resulting gold-silver concentrates sold to Ocean Partners UK, a global metals trading company that is also a shareholder of Blue Lagoon.
Alongside Nicola, Ocean Partners made a further C$5 million equity investment in Blue Lagoon, following its C$3 million investment earlier this year at C$0.90 per share.
Together, the two investments provide Blue Lagoon with C$10 million in additional capital to support production growth while strengthening the relationship between mine development, processing, and concentrate marketing.
“Together with Ocean Partners, we believe this financing positions Blue Lagoon to accelerate its transition toward sustained commercial production while strengthening an integrated mining model that combines financing, processing, and concentrate marketing,” Espig says.
BC’s only gold mill
Nicola operates the only mill currently permitted to receive 3rd party gold and silver feed from across the province of British Columbia. Located near Merritt, their mill currently has a processing capacity of 200tpd, with Nicola on deck to expand it to 500tpd.
The company expects the Merritt Mill to play an increasingly important role in supporting regional mining operations. It previously had tolling agreements with Osisko Development (TSX-V: ODV) and TSX:Talisker Resources (TSX:TSK) while currently it is actively partnered with Blue Lagoon (CSE: BLLG) and other companies not yet announced.
Beyond its milling business, Nicola holds three fully permitted mining projects in British Columbia: the New Craigmont Copper Project, Treasure Mountain Silver Mine Project, and Dominion Creek Gold-Silver Project.
Nicola owns 100% of New Craigmont and Treasure Mountain, while it holds a 75% interest in Dominion Creek through its tolling agreement which rises to 100% after processing the first 10,000 tonnes.
Nicola Mining is a junior mining company that owns and operates a 100%-owned mill and tailings facility, as well as 100% owned and permitted copper and silver mines near Merritt, British Columbia.
Write to Jackson Chen at Mining.com.au
Image: Bruno Venditti
