- Nicola Mining Inc. (NIM) extends the gold and silver profit share agreement with Blue Lagoon (BLLG) for Dome Mountain Mine and receives the first shipment
- The amending agreement extends the original agreement by two years, through to March 31, 2023
- After having considered various options, BLLG selected NIM’s Merritt Mill as the province’s top site to process gold and silver mill feed
- Nicola’s Merritt Mill site is a unique milling and processing facility because the Company owns the industrial-zoned site free-hold
- Blue Lagoon Resources Inc. is up 1.79 per cent and is trading at C$0.57 at 10:50 am ET
Nicola Mining (NIM) and Blue Lagoon Resources (BLLG) signed an amendment to the milling and smelting profit share agreement dated March 31, 2017.
The amending agreement extends the original agreement by two years, through to March 31, 2023.
The amending agreement comes at a particularly exciting time, as Blue Lagoon has received permission allowing it to extract more than 6,000 tonnes1 of underground stockpiled material.
Nicola has ordered spare parts, prepped its mill, and is in the process of hiring key employees prior to commencing production at its mill, which is located near Merritt, B.C.
On April 1, 2021, Blue Lagoon Inc. sent to Nicola the first truck of gold and silver mill feed from its Dome Mountain Gold-Silver Mine.
After having considered various options, BLLG selected NIM’s Merritt Mill as the province’s top site to process gold and silver mill feed.
Nicola’s Merritt Mill site is a unique milling and processing facility because the Company owns the industrial-zoned site free-hold.
The approximate $30.0 million facility is also the location of the historic Craigmont Copper Mine, which had a historic production grade of 1.3 per cent Cu.
Nicola Mining and BLLG continue to monitor snowpack indices for BC, which is 113 per cent of normal.
Upon confirmation of the roads opening after spring runoff, BLLG expects to increase the daily trucking of stockpiles to the Merritt Mill.
Peter Espig, CEO of Nicola, commented, “We are very excited to have signed the Amending Agreement with Blue Lagoon, a well-run company under the tutelage of Rana Vig.”
Rana Vig, CEO of Blue Lagoon Resources commented, “Having reviewed several options, it became clear to us that Nicola’s modern milling facility and the leadership team was a logical choice as a partner. “
“We are excited about the prospect of commencing production and continuing a long-term relationship with Nicola Mining Inc. as we shift from stockpile to mining,” concluded Vig.
Blue Lagoon Resources Inc. is up 1.79 per cent and is trading at C$0.57 at 10:50 am ET.