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Canadian junior miner signs transformational offtake agreement
Canadian junior miner EDM Resources (TSXV:EDM), market capitalization C$3.74 million, signed a definitive US$58 million gypsum offtake agreement with a large producer and Canadian wallboard manufacturer
EDM is a Canadian junior miner active in Nova Scotia on a path to near-term zinc, lead and gypsum production
EDM Resources stock has given back 87 per cent since 2022
Canadian junior miner EDM Resources (TSXV:EDM), market capitalization C$3.74 million, signed a definitive US$58 million gypsum offtake agreement with a large producer and Canadian wallboard manufacturer.
Gypsum's is used in the manufacturing of wallboard, drywall cement, plaster of Paris, as a hardening retardant in Portland cement, as well as in fertilizer, sidewalk chalk and other specialty products. According to Statista, gypsum prices averaged US$13 per ton in 2024.
The client, an arm's length private subsidiary of a publicly listed industry leader, will pay a US$250,000 advance for five years of exclusive access to gypsum produced at EDM's Scotia mine, located 62 kilometres northeast of Halifax, Nova Scotia. According to Monday's news release, the province has been involved in gypsum production for over 200 years and is the world's most productive region for the mineral.
The deal covers half of Scotia's 5.1 million tons in gypsum reserves – as detailed in a 2021 pre-feasibility study, which also estimates considerable nickel and zinc resources – and envisions commercial production by December 31, 2026. Leadership insights
'We are very pleased to secure the third revenue stream opportunity for our Scotia mine, which is in addition to the forecasted zinc and lead revenue streams. With the execution of the new gypsum offtake agreement, the Scotia mine secures market rate payments for at least 2.5 million tons of gypsum,' Mark Haywood, EDM Resources' president and chief executive officer, said in a statement. About EDM Resources
EDM is a Canadian junior miner active in Nova Scotia on a path to near-term zinc, lead and gypsum production.
EDM Resources stock (TSXV:EDM) is unchanged trading at C$0.07 as of 9:54 am ET. The stock has given back 87 per cent since 2022.
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