Latest news with #EDMResources
Yahoo
12 hours ago
- Business
- Yahoo
EDM Resources secures $58m gypsum offtake deal
Canadian exploration and mining company EDM Resources has signed a definitive gypsum offtake supply agreement valued at $58m (C$79.39m) with a Canadian gypsum producer and wallboard manufacturer for gypsum produced from the Scotia Mine in Nova Scotia, Canada. The agreement, signed on 3 June 2025, will see the gypsum offtaker make an advance payment of $250,000 for a five-year exclusivity on gypsum produced at the Scotia Mine. This payment is unsecured and non-refundable if production does not commence before 31 December 2026. The offtake represents half of the total mineral reserve and is based on projected volumes over a ten-year period. The Scotia Mine has a defined NI 43-101 mineral reserve of 5.1 million tonnes (mt) of gypsum, comprising 1,530,000 tonnes (t) of proven mineral reserves with a gypsum grade of 92.8%. The probable mineral reserves are estimated at 3.65mt with a grade of 91.4%, as per the 2021 pre-feasibility study (PFS). The PFS indicated an expected gypsum revenue of $43.9m based on 2021 prices of $8.6/t. Gypsum is widely used in the construction and agricultural industries, among others. The average price for crude gypsum was $13/t in 2024, with an expected increase due to rising demand in North America. The gypsum offtaker will pay for gypsum delivered free-on-board trucks at the Scotia Mine on a take-or-pay contract basis. EDM Resources president and CEO Mark Haywood said: 'We are very pleased to secure the third revenue stream opportunity for our Scotia Mine, which is in addition to the forecast zinc and lead revenue streams. 'With the execution of the new gypsum offtake agreement, the Scotia Mine secures market rate payments for at least 2.5mt of gypsum.' EDM Resources is currently in the exploration and evaluation stage and has not generated revenue from operations. The company's ability to execute its objectives depends on its capacity to secure additional financing. Proceeds from the sale of gypsum under the offtake agreement are contingent upon the commencement of production at the Scotia Mine, with various risks and uncertainties. "EDM Resources secures $58m gypsum offtake deal" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Market Online
a day ago
- Business
- The Market Online
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. Join the discussion: Find out what everybody's saying about this Canadian junior zinc, lead and gypsum stock on the EDM Resources Inc. Bullboard and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
