Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has entered into a definitive agreement to acquire a third 1% net smelter return (NSR) royalty on Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. The acquisition, announced September 3, 2026, aligns with Silver Crown's strategy to build a portfolio of silver-focused royalties.
Under the agreement, Silver Crown will pay US$2 million in cash at closing, plus issue 38,401 units (each unit comprising one common share and one-half warrant) valued at US$1 million, and an additional US$1 million in contingent consideration payable in units upon the first royalty payment after 30 days of continuous production at a rate of at least 70 tonnes per day. The warrants will be exercisable at 150% of the volume-weighted average trading price over the five days preceding the applicable issuance date, for a period of 24 months.
Closing is expected on or before October 31, 2026, subject to customary conditions, including Cboe Canada approval and registration of the royalty on title. All securities issued will be on a prospectus-exempt basis and subject to statutory hold periods.
CEO Peter Bures commented, "Our initial intent was to acquire the complete royalty package and eventually restructure the existing royalty into a silver-only royalty as per our mandate. Once this acquisition is completed, we intend to move forward with our silver-only strategy on Titiminas' Madre Sierra project. In time, we believe this royalty will become a very significant silver ounce contributor for our company."
This acquisition brings Silver Crown's total to six silver royalties, with three currently generating revenue. The move underscores the company's focus on silver, which offers investors a hedge against currency devaluation while mitigating cost inflation impacts. By consolidating royalties on the Madre Sierra project, Silver Crown aims to maximize shareholder returns while minimizing economic impact on mining operations.
The transaction is part of a broader trend in the royalty sector, where companies are increasingly specializing in specific metals to differentiate themselves. Silver Crown's strategy could position it to benefit from growing industrial and investment demand for silver, particularly in sectors like solar energy and electronics.
Investors should note that forward-looking statements involve risks and uncertainties, including the ability to complete the transaction on time, receipt of future royalty payments, and the potential restructuring of the royalties. The company cautions that actual results may differ materially from expectations.
For more information, visit the original announcement at NewMediaWire.
