EDM Resources enters into a silver royalties contract with Silver Crown Corporation
Silver Crown Royalties Inc., a publicly traded silver royalty company, has announced a significant agreement with EDM Resources Inc. The deal, signed on August 6, 2025, involves a silver royalty on production from EDM's Scotia Mine in Nova Scotia, Canada.
Under the terms of the agreement, Silver Crown will receive 90% of the net proceeds from silver ounces sold from the Scotia Mine each quarter. The company has set a minimum delivery obligation of 7,000 ounces annually, starting from the commencement of commercial production and continuing for 10 years.
In return, EDM Resources received C$500,000 in non-dilutive capital to help advance the Scotia Mine towards production. This payment is split into C$250,000 at closing and another C$250,000 within 30 days. Additionally, EDM received 60,000 units in Silver Crown, with each unit consisting of one common share and a warrant exercisable at C$13 per share for 36 months.
The royalty obligation ceases once Silver Crown has received either 50,000 ounces of silver or C$2.5 million in royalty payments, but the royalty itself remains in effect for the 10-year duration. The transaction is anticipated to close in the second week of August 2025.
Peter Bures, Silver Crown's Chairman and CEO, commented on the acquisition, saying, "This agreement strengthens Silver Crown's portfolio of silver royalties in stable mining jurisdictions and provides EDM Resources with capital to move the Scotia Mine to production as soon as possible."
This performance-based incentive may be paid in cash or in Units, subject to Cboe regulations and approval. However, it is important to note that this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction.
The agreement also includes a performance-based incentive for EDM. If the company doubles its silver production of 7,000 ounces sold over a 12-month period, Silver Crown will provide an additional C$500,000 bonus. This performance-based incentive can be paid in cash or in Units.
The news release contains forward-looking statements and information. Factors that may cause actual results to differ materially from those contained in forward-looking statements include, but are not limited to, impact of general business and economic conditions, risks related to mining operations, accidents, equipment breakdowns, title matters, labor disputes, SCRi's ability to enter into definitive agreements and close proposed royalty transactions, inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests, problems inherent to the marketability of gold and other metals, industry conditions, fluctuations in the price of the primary commodities mined, government entities interpreting existing tax legislation or enacting new tax legislation, stock market volatility, regulatory restrictions, liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi's business, operations and financial condition, loss of key employees.
For more information about Peter Bures or Silver Crown Royalties Inc., please contact:
Peter Bures Chairman and CEO Silver Crown Royalties Inc. Telephone: (416) 481-1744 Email: [email protected]
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- This deal between Silver Crown Royalties Inc. and EDM Resources Inc. signifies a strategic move for both companies, as it involves a finance aspect through a silver royalty on production from EDM's Scotia Mine, as well as a business implication, since the agreement strengthens Silver Crown's portfolio in the mining industry.
- The agreement also includes a performance-based incentive for EDM Resources, which could potentially lead to significant profits in both the finance sector and the mining business, as the company stands to receive an additional C$500,000 bonus if they double their silver production within a year.
