Silver Crown Royalties Inc. has completed a non-brokered private placement with investor Michael Gentile, raising approximately C$3 million through the sale of 424,500 units at C$7 per unit. Each unit consists of one common share and one warrant, with warrants exercisable at C$8.25 per share for three years. The transaction gives Gentile indirect control over 424,500 common shares and warrants, representing approximately 18.52% of the company's issued and outstanding common shares on a partially diluted basis.
The investment is significant because it provides Silver Crown with substantial capital to pursue its strategic objectives in the silver royalty sector. According to the company, proceeds will be allocated primarily toward specific accretive silver royalties that have been identified and are advancing, while also bolstering general working capital. This funding positions the company to expand its portfolio during a period when many analysts anticipate rising silver prices, potentially enhancing shareholder value through increased royalty acquisitions.
For investors, this transaction demonstrates confidence in Silver Crown's business model from an established investor. Michael Gentile's acquisition of an 18.52% stake represents a substantial commitment to the company's future. The investment structure, with warrants exercisable at a premium to the current unit price, suggests long-term alignment between the investor and other shareholders. The company's focus on silver royalties offers exposure to precious metals while potentially mitigating some operational risks associated with traditional mining companies.
The transaction required regulatory filings under Canadian securities laws. As required by National Instrument 62-103, Gentile filed an Early Warning Report detailing his acquisition. Copies of this report are available on the company's profile on the System for Electronic Document Analysis and Retrieval at https://www.sedarplus.ca. Prior to this investment, Gentile did not own any securities in Silver Crown, making this a new, substantial position acquired for investment purposes.
This capital infusion comes at a time when silver royalty companies are increasingly viewed as strategic vehicles for gaining exposure to precious metals. Silver Crown's model of acquiring royalties on mining projects allows investors to benefit from production without bearing the full operational costs and risks. The company currently holds five silver royalties and aims to generate free cash flow while providing a hedge against currency devaluation. The successful completion of this private placement without paying finder's fees or commissions suggests efficient capital raising and strong investor interest in the company's direction.
