Dave Gunning, 39, is set to release the CD called "No More Pennies" next week and a supporter who works for the mint in Ottawa inadvertently tipped off officials about the images, the Toronto Star reported from Halifax.
Gunning's album focuses on changes in Canada's culture, including the coming abolition of the penny. The art shows a penny representing the sun slipping behind the horizon and pennies as wheels on a steam locomotive.
He said he was told the mint would waive the $1,200 in royalties for the first 2,000 CDs sold, but anything after that would require payment.
Alex Reeves, communications manager for the mint, told the Star the performer got off lucky.
"We have helped this guy out by giving him a break," Reeves said. "Now that we have explained the rules and the policy, it's very clear what the implications are for using the penny's image."
Gunning wasn't sure about changing the album art for a second release.
In the meantime, he's urging fans to bring pennies to his coming concerts, which he'll donate to a children's hospital.
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