Canadian publicly listed mining company Blue Lagoon Resources says it has made significant progress at its Dome Mountain gold project, in British Columbia, as it prepares to enter production in a strong gold market.

“We are fully funded, fully permitted and now entering the final stages of mine readiness – with no short-term debt, multiple successful government inspections and a water treatment plant that has been completed,” president and CEO Rana Vig explains.

“The confidence shown by our institutional investors, along with new strategic backing and the recently signed $2-million line of credit – not secured against our property – from Nicola Mining, gives us the flexibility to fund mining and development without delay. We’re ready – and we’re moving quickly toward cash flow,” Vig adds.

With the construction of the water treatment system complete and regulatory milestones achieved, the company highlights that it is advancing mine development activities in accordance with its permit.

The official mine opening is scheduled for July 9.

Blue Lagoon recently completed a successful non-brokered financing, fully subscribed by existing long-term shareholders including Crescat Capital, Phoenix Gold Fund and Nicola Mining, alongside a small group of new strategic investors.

Also, Vig and board member Gurdeep Bains both increased their personal stakes in the company.

Blue Lagoon currently carries no short-term debt and has in-the-money warrants valued at over $3.6-million.

Blue Lagoon has also secured a $2-million line of credit from Nicola Mining, which can be drawn in $500 000 tranches, without any encumbrance on the company’s mineral property.

Blue Lagoon says that, while it may ultimately never need to draw on this facility, having access to it provides an important financial backstop.

Blue Lagoon has also welcomed Michael McCardal as senior underground geologist.

He brings three decades of underground gold mining experience with producers including Ascot Resources, Barkerville Gold Mines, Pure Gold Mining and Kirkland Lake Gold.

“Mike’s experience will be very helpful in establishing best-in-class grade control and optimising early stopes as we move into production this summer,” says Vig.

As part of its final mine preparation, the company successfully passed three separate government inspections of electrical, reclamation and geoscience, and ground control and health and safety, confirming operational readiness across critical areas.

Construction of Blue Lagoon’s water treatment system, a critical component of the company’s environmental compliance plan, is now complete and partially commissioned, as required under the company’s Mines Act permit.

Designed to meet all regulatory discharge standards, the plant is engineered to treat mine water efficiently and in full alignment with the company’s permit conditions.

Blue Lagoon also collaborated closely with regulatory agencies and the Lake Babine Nation throughout the design and construction process to ensure the system meets both technical and community expectations, it says.