EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) has provided a second quarter operational update, highlighting progress on permitting, financing, exploration and technical work as it continues advancing its Scotia Mine project in Nova Scotia toward a production decision.
The company said the Department of Fisheries and Oceans has advised that its Fisheries Act Authorization (FAA) application is progressing through the First Nations engagement stage. EDM said it continues to work with First Nations and regulators to address information requests and expects an FAA decision during the summer or fall of 2026.
During the quarter, EDM also received operational approval for the Environmental Assessment covering the Scotia Mine South West expansion project, eliminating the need for further extensions, the company said.
On the financing front, EDM said holders exercised 1.54 million warrants with a strike price of $0.14 and 100,000 stock options during the quarter, generating gross proceeds of approximately $1.55 million. At quarter-end, the company had 80 million shares outstanding, along with 22.6 million warrants and 5.7 million options. EDM said the remaining warrants could generate about $3.2 million in additional proceeds if exercised.
The company also noted that its common shares began trading on the OTCQB on June 1 and said it expects to become eligible for electronic clearing and settlement through the Depository Trust Company later this month, a move it said would improve trading efficiency in the US.
To accommodate the ongoing permitting process, EDM said it extended the start date of its gypsum offtake agreement, with the initial five-year term now set to begin by December. 31, 2027.
On the exploration side, the company said the first phase of its gold exploration program is underway at Scotia Mine. It is also assessing additional gypsum resources at the site and advancing work on an updated NI 43-101 mineral resource estimate, which is expected to be incorporated into a planned updated pre-feasibility study.
EDM said it has submitted proposed operational improvements for the mine and processing facilities through amendments to its existing industrial approvals and is evaluating ore sorting technology that could reduce waste entering processing circuits.
EDM’s CEO Mark Haywood described the second quarter as a "transformational period" for the company, citing progress in permitting, financing, capital markets and project development.
“With the Fisheries Act Authorization process progressing well and preparations for the updated Pre-Feasibility Study advancing, we believe EDM is increasingly well positioned to advance the Scotia Mine toward a production decision,” Haywood said.
Looking ahead to the third quarter, the company said its priorities include advancing the FAA review process, expanding US investor outreach, progressing gold exploration, beginning work on the updated NI 43-101 pre-feasibility study and mineral resource estimate, receiving initial offtaker financing terms and continuing to strengthen its capital structure.