Toronto-based SilverBirch said that it expects Red Mile to contribute over $7 million in revenues and $2 million in earnings beginning in 2009.

SilverBirch has advanced a bridge loan of CAD $750,000 to Red Mile as part of the acquisition terms.

Red Mile"s PC flight combat title Heroes of the Pacific sold over 600,000 units, according to SilverBirch, and a sequel is under development called Heroes Over Europe.

Red Mile also has an unnamed licensed title under development.

SilverBirch Inc. is parent company to SilverBirch Studios, which operates the MMORPG Metin2.

The transaction is subject to regulatory and shareholder approvals.