**Nicola Mining Partners with Blue Lagoon to Scale Precious Metal Operations, Records First Major Transaction**

The precious metals sector witnessed a significant milestone as Nicola Mining Inc. (TSXV: NIM) and Blue Lagoon Resources (CSE: BLLG) successfully completed their inaugural sale under a newly established long-term collaboration framework. The transaction, valued at US$1.0 million, involved the delivery of gold and silver to Ocean Partners UK Limited, marking the practical execution of a strategic alliance announced earlier in 2025.

This commercial milestone reflects the maturation of both companies' operational capabilities. Blue Lagoon has been consistently fulfilling supply commitments since commencing mill feed hauling operations in early December, demonstrating the logistics infrastructure supporting this partnership. For Nicola Mining, the transaction underscores the company's capacity to aggregate and monetize precious metal output from its network of high-grade mining projects in British Columbia.

**Production Infrastructure and Asset Positioning**

Nicola Mining operates from a strategically advantaged position with its fully-permitted milling facility positioned near Merritt, British Columbia. The installation is equipped to process both gold and silver through dual processing methodologies—gravity and flotation techniques—creating operational flexibility across varying ore compositions. The company's portfolio includes two substantial mineral assets: the New Craigmont Project, a copper-rich property spanning over 10,800 hectares along the Guichon Batholith and immediately adjacent to Highland Valley Copper (Canada's premier copper mining operation), and the Treasure Mountain Property, a permitted silver mine encompassing approximately 2,200 hectares across 30 mineral claims and associated mineral lease holdings.

**Strategic Coordination and Market Timing**

According to Nicola Mining CEO Peter Espig, the partnership represents a coordinated ramp-up in production and revenue generation occurring during a favorable pricing environment for precious metals. Blue Lagoon's progression through permitting and development stages to operational production status has positioned the two entities to capitalize on current market conditions. The collaboration structure—based on Mining and Milling Profit Share Agreements—aligns incentives between the material suppliers and the processing operation, creating a mutually reinforcing production ecosystem.

The transaction with Ocean Partners UK Limited, which maintains a global network within the base metals and smelting sectors, provides both companies with established distribution channels for their output. This inaugural payment and ongoing supply arrangement signals the beginning of a potentially sustained commercial relationship designed to scale with market opportunities and production capacity.