After arriving in Slurry Quay, your next destination is the town of Dourbridge.
During the day, you will get to see a cutscene if you go east along the bridge.
In the northeast tent, you will find Captain Max Meddlin'. He collects Mini Medals. He will give you reward based on how many medals you give him. After you have given him 80 medals (it will take a while) he will run a shop where you can buy things with Mini Medals.
You most likely have at least four Mini Medals already, so talk to Max Meddlin' to get the Thief's Key. This item will let you open up all of the locked red chests that you have found so far:
Locations of Locked Chests you can Open Now
- In Max Meddlin's Tent
- Stornway Castle B1, northwest room
- Porth Llaffan Mayor's house
- Slurry Quay next to inn
After handing over the medals, Max Meddlin' will tell you how many more medals he needs before he'll give you the next prize. Be sure to come back here after you have collected more medals. Occasionally the medals can be found in blue chests.
After you have looted the chests here in Max Meddlin's tent, you should explore the rest of Dourbridge.
Outside, go down the stairs and head north and into the house. Read the books in the bookshelves for recipes, and open the blue chest.
In the item shop, there are more recipes in the bookshelves.
After you have explored Dourbridge (and taken a detour to open the chests with the Thief's Key), you can use the east exit of town. Head southeast until the path splits to the northeast. You should go northeast to reach the Heights of Loneliness.