EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) announced that it has completed the sale of a silver royalty to Silver Crown Royalties.
Under the terms of the agreement, EDM received an initial payment of C$250,000 and 60,000 units of Silver Crown.
Each unit consists of one common share and one share purchase warrant exercisable at C$13 for a period of 36 months from the closing date. The units were issued at a deemed price of C$10 each.
"We are pleased to have closed our silver royalty with Silver Crown having received the first installment of C$250,000 and also 60,000 Units in Silver Crown,” EDM Resources CEO Mark Haywood said.
Silver Crown is required to make an additional payment of C$250,000 to EDM within 30 days of closing, bringing the total cash consideration to C$500,000.
The royalty applies only to silver that may be produced as a by-product of mining at EDM’s Scotia Mine and does not extend to zinc, lead, gypsum, or gold.
Silver Crown is an arm’s length party to EDM, and no finder’s fees were paid in connection with the transaction.