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.
