Silver Crown Royalties Inc. entered into a license agreement with EDM Resources Inc. on August 6, 2025, securing the company the right to a share of the silver proceeds from the Scotia Mine in Nova Scotia, Canada. The mine is located approximately 70 kilometers from Halifax and was historically a producing site for zinc and lead. EDM is currently working to restart operations at the mine.
License Agreement with Fixed Minimum Quantities
Under the agreement, Silver Crown will receive 90% of the net proceeds from the sale of silver from the mine for a period of ten years from the start of commercial production. A minimum delivery quantity of 1,750 ounces per quarter or 7,000 ounces per year has been agreed upon.
The purchase price for the license is CAD 500,000 in cash – CAD 250,000 upon signing the agreement and an additional CAD 250,000 within 30 days. Additionally, EDM will receive 60,000 so-called “Units”, each valued at CAD 10. Each Unit consists of one common share of Silver Crown and a warrant that can be exercised at a price of CAD 13 per share within 36 months.
Bonus Payment upon Production Increase
As an additional incentive, Silver Crown has committed to a bonus payment of CAD 500,000 if EDM manages to double the annual silver production to over 14,000 ounces – measured by a six-month rolling average. This bonus payment can be made either in cash or in additional Units, subject to the approval of the stock exchange authorities.
According to Silver Crown CEO Peter Bures, this license agreement is a project that was conceived at a very early stage. Although initial revenues from the license are not expected until 2027, Bures emphasizes the strategic importance of such investments. With a relatively moderate capital expenditure of a total of CAD 1 million (or CAD 1.5 million with the bonus payment), the commitment remains conservative compared to the CAD 9.6 million invested to date.
