Silver Crown Royalties Inc. has announced a C$3,000,000 strategic investment through a non-brokered private placement by investor Michael Gentile, who will also join the company as a strategic advisor. The offering consists of 424,500 units at $7.00 per unit, with each unit comprising a common share and one common share purchase warrant.
Michael Gentile, CFA, is a prominent strategic investor and advisor in the junior mining sector with extensive capital markets experience. He is currently the largest shareholder in over 25 junior mining companies and serves on several boards while acting as a strategic advisor. In 2021, he co-founded Bastion Asset Management, a Montreal-based hedge fund now managing over C$700 million in assets, and previously served as Vice President and Senior Portfolio Manager at Formula Growth Ltd from 2001 to 2018.
Peter Bures, Chief Executive Officer of Silver Crown Royalties, stated that Gentile's industry knowledge and contacts should benefit shareholders through an expected lower cost of equity capital. "The proceeds from the Offering will be allocated primarily toward specific accretive silver royalties, which we have identified and are advancing, and to bolstering general working capital, positioning Silver Crown to expand its portfolio and capitalize on the favorable outlook for rising silver prices," Bures explained. More information about the company can be found at https://silvercrownroyalties.com.
Michael Gentile expressed enthusiasm about joining Silver Crown Royalties as a cornerstone shareholder and strategic advisor. "With Silver making new record highs, I see a massive value creation opportunity ahead for SCRi as they exploit an untapped market opportunity in the Silver Royalty space," Gentile said. "Peter and the team have built a tightly held, well-structured royalty platform that is deeply undervalued and not appreciated by the market. I look forward to helping SCRi accelerate their growth initiatives and increase their market presence and awareness."
As compensation for his advisory role, Silver Crown has issued Gentile 50,000 stock options with a strike price of $8.05 for three years, and he will be entitled to participate in the company's RSU program according to its omnibus equity incentive plan. Silver Crown Royalties, which trades on Cboe under the symbol SCRI, on OTCQX as SLCRF, and on FRA as QS0, currently holds five silver royalties and focuses on generating free cash flow while providing investors exposure to precious metals as a hedge against currency devaluation.
This development is significant for investors and the mining industry as it signals confidence in silver's market outlook and validates Silver Crown's business model. Gentile's involvement brings substantial credibility and capital markets expertise that could enhance the company's ability to secure favorable financing and identify valuable royalty opportunities. The investment comes at a time when silver prices are reaching record highs, creating potential for increased royalty revenues and shareholder value. For market participants, this represents a notable endorsement of the silver royalty sector and suggests growing institutional interest in precious metals as inflation hedges and strategic investments.
