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Blue Lagoon Signs Letter of Intent to Acquire Metal Mountain Resources Inc.
VANCOUVER, BC / ACCESSWIRE / February 25, 2020 / Blue Lagoon Resources Inc. ("Blue Lagoon" or the "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to anno
About this update from Blue Lagoon Resources Inc
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / February 25, 2020 / Blue Lagoon Resources Inc. (\"Blue Lagoon\" or the \"Company\") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to announce that it has signed a non-binding letter of intent to acquire 100% of the outstanding shares of Metal Mountain Resources Inc. (\"Metal Mountain\"), a private British Columbia company. Metal Mountain holds a 50.84% interest in Gavin Mines Inc. (\"Gavin Mines\"), which in turn holds a 100% interest in the Dome Mountain Mine located near the town of Smithers in northwest British Columbia. Metal Mountain also holds a 100% interest in the Big Onion Property, also located near Smithers. Blue Lagoon has separately entered into a binding letter of intent with AGC Investments Inc. (\"AGC\"), a private company which holds a 27.44% interest in Gavin Mines, whereby Blue Lagoon may acquire AGC's interest on closing of the acquisition of Metal Mountain. With the acquisition of Metal Mountain's 50.84% interest and AGC's 27.44% interest, Blue Lagoon will hold a total of 78.28% interest in the Dome Mountain Mine. Pursuant to the letter of intent with Metal Mountain, the Company is proposing to issue approximately 12.15 million shares in exchange for the shares of Metal Mountain. Pursuant to the letter of intent with AGC, Blue Lagoon would issue a further 1,372,000 shares in exchange for AGC's interest in Gavin Mines, subject to certain terms and conditions being met as set forth in the letter of intent. THE DOME MOUNTAIN MINE The Dome Mountain Mine includes a past producing mine on tenures consisting of 42 contiguous mining claims and one mining lease totaling 10,970 hectares, located approximately 38 kilometers east of the town of Smithers in northwest British Columbia. Expenditures on the mine by past operators, including Gavin Mines, Timmins and Noranda, have totaled in excess of $68 million, $28 Million of which was spent by Gavin in the past 12 years. Mine permitting and significant infrastructure construction and underground development was completed on the mine between 2010 and 2012, including about 75% of the planned underground development necessary for commencing production from the site. The Dome Mountain Project holds a Mining Permit and Environmental Management Act Permit (EMA) providing for up to 75,000 tonnes annually. The following provides a summary of the infras...