Wedoany.com Report-Jun 11, Canadian exploration and mining company EDM Resources has entered into a $58 million (C$79.39 million) gypsum supply agreement with a Canadian gypsum producer and wallboard manufacturer. The deal, finalized on June 3, 2025, covers gypsum from the Scotia Mine in Nova Scotia, Canada.

The Scotia Mine has a defined NI 43-101 mineral reserve of 5.1mt of gypsum.

Under the agreement, the buyer will provide a $250,000 advance payment for exclusive rights to gypsum from the Scotia Mine for five years. This payment is non-refundable and unsecured if production does not start by December 31, 2026. The contract covers half of the mine’s mineral reserves, based on projected output over a decade.

The Scotia Mine holds a defined NI 43-101 mineral reserve of 5.1 million tonnes of gypsum, including 1.53 million tonnes of proven reserves with a 92.8% gypsum grade and 3.65 million tonnes of probable reserves with a 91.4% grade, as outlined in a 2021 pre-feasibility study. The study projected gypsum revenue of $43.9 million based on 2021 prices of $8.6 per tonne. In 2024, the average price for crude gypsum reached $13 per tonne, with further increases expected due to growing demand in North America for construction and agricultural applications.

The buyer will pay for gypsum delivered on a take-or-pay basis, with the product loaded onto trucks at the Scotia Mine. EDM Resources president and CEO Mark Haywood stated: “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, currently in the exploration and evaluation phase, has yet to generate operational revenue. The company’s ability to meet its goals depends on securing additional financing. The proceeds from the gypsum agreement hinge on the start of production at the Scotia Mine, which faces various risks and uncertainties.