Halifax, Nova Scotia--(Newsfile Corp. - August 7, 2025) - EDM Resources Inc. (TSXV: EDM) (FSE: P3Z) ("EDM" or the "Company") is pleased to announce that it has entered into a royalty purchase agreement (the "RPA") with Silver Crown Royalties Inc. ("SCRi") dated August 6, 2025 under which SCRi will acquire a royalty on silver produced from EDM's Scotia mine (the "Royalty").
"We are very pleased to secure a silver royalty with Silver Crown for our Scotia Mine which provides $500,000 of non-dilutive capital for EDM to continue its focus on advancing the Scotia Mine to production as soon as possible. Silver Crown are a growing silver royalty company, and we are excited to also hold an equity position in them as they expand their silver royalty business." said, Mr. Mark Haywood, President & CEO.
SCRi is a silver royalty company listed on the CBOE Canada, OTCQX and Frankfurt stock exchanges under the symbol SCRI, SLCRF and QS0 respectively. SCRi currently has a total of four silver royalties with other mining companies in both North and South America.
The RPA
Under the RPA, SCRi has agreed to pay EDM a total of C$500,000 in cash for the Royalty, of which C$250,000 will be paid at closing and the balance of C$250,000 will be paid within 30 days from closing.
As further consideration for the purchase of the Royalty, SCRi will also issue 60,000 units ("SCRI Units") to EDM at closing at a deemed price of C$10.00 per SCRI Unit. Each SCRI Unit is comprised of one common share of SCRI and one share purchase warrant entitling EDM to acquire an additional common share of SCRI at a price of C$13.00 per share for a period of 36 months from the closing date.
The closing of the purchase of the Royalty contemplated by the RPI is expected to take place in the second week of August, 2025.
Royalty Terms
The Royalty is payable to SCRi upon the commencement of commercial production at the Scotia Mine for a period of ten years (the "Royalty Period"), and requires EDM to pay SCRi 90% of the net proceeds per quarter of the number of silver ounces contained in all mineral products sold during the quarter. "Net Proceeds" in any given quarter means the dollar amount determined by multiplying the full number of silver ounces contained in all mineral products sold during such quarter by the average silver price during such quarter less permitted deductions.
The Royalty is subject to an annual minimum payment based on 7,000 ounces of silver per year multiplied by the average silver price without regard for various permitted deductions (the "Minimum Delivery Obligation"). The Minimum Delivery Obligation shall remain in effect for a minimum of ten years following the commencement of commercial production, but will suspended if the Scotia Mine is not in production for any reason other than scheduled maintenance. Notwithstanding the foregoing, the Minimum Delivery Obligation shall terminate upon the earlier of: (i) the cash equivalent of 50,000 ounces of silver having been delivered pursuant to the Royalty; and (ii) the total dollar amount of Silver Royalty payments made to SCRi reaching $2,500,000. Notwithstanding the termination of the Minimum Delivery Obligation, the Royalty remains payable through the Royalty Period.
If EDM achieves a 100% increase to the Baseline Silver Production (being the sale of 7,000 ounces of silver in a 12 calendar-month period) measured on a trailing annualized basis for two (2) consecutive calendar quarters, SCRi will pay EDM a bonus of C$500,000, which bonus may be paid by SCRi at its election in or in cash or in SCRI Units priced in accordance with the rules of the CBOE Canada stock exchange.
The Royalty includes a variety of additional standard terms for a royalty of this nature, including terms relating to the timing and manner in which payments are to be made, reporting and recordkeeping and the handling of any objections by SCMi and any disputes which may arise between the parties.
About EDM Resources Inc.
EDM is a Canadian exploration and mining company that has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. Through its wholly owned subsidiary, EDM also holds several prospective exploration licenses near its Scotia Mine and in the surrounding regions of Nova Scotia.
The Company's common shares are traded on the TSX Venture Exchange under the symbol "EDM" and on the Frankfurst Exchange under the symbol "P3Z". For more information, please contact:
Mark Haywood
President & Chief Executive Officer
Arnab De
Chief Financial Officer
Manish Grigo
Corporate Development
Telephone +1 (902) 482 4481
Facsimile +1 (902) 422 2388
Email & Web info@EDMresources.com & www.EDMresources.com
The Company's corporate filings and technical reports can be viewed on the Company's SEDAR+ profile at www.sedarplus.ca. Further information on EDM is also available on Facebook at http://www.facebook.com/EDMresources.inc, Twitter at http://www.twitter.com/EDMresources, LinkedIn at http://www.linkedin.com/company/EDMresources and Youtube at https://youtube.com/@edmresources?si=Bvyighil3mSoOKnD
CAUTIONARY STATEMENTS
Neither the TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261641
SOURCE: EDM Resources Inc.
