Silver Crown Royalties Completes Final Payment for 15% Silver Royalty on Peruvian Mining Project

Silver Crown Royalties Completes Final Payment for 15% Silver Royalty on Peruvian Mining Project

By Burstable Editorial Team

TL;DR

Silver Crown secured a 15% royalty on PPX's silver production, positioning the company for positive cash flow by 2026 without needing capital market access.

Silver Crown paid $637,000 to increase their Igor Project royalty by 3.9%, bringing the total to 15% covering 225,000 ounces of silver.

This royalty agreement supports responsible mining development in Peru while creating sustainable revenue streams that benefit shareholders and local communities.

Silver Crown now holds rights to 225,000 silver ounces from Peru's Igor Project, having already received 2,247 ounces from the productive mine.

Silver Crown Royalties Inc. has completed the final tranche of its silver royalty agreement with PPX Mining Corp., solidifying a 15% stake in the cash equivalent of silver produced from the Igor 4 project in Peru. The company paid US$637,000 to PPX Mining to finalize the royalty arrangement, which now encompasses 225,000 ounces of silver payable to Silver Crown Royalties.

The completed transaction increases Silver Crown's royalty by 3.9% to reach the full 15% entitlement, with the total payable silver ounces expanding by an additional 58,500 ounces. According to the royalty agreement dated December 13, 2024 between the companies and amended on July 31, 2025, PPX Mining has already delivered 2,247 ounces of silver to Silver Crown Royalties from the total commitment. The Igor Project is located in the prolific Northern Peru gold belt in eastern La Libertad Department, representing a significant mining asset in a region known for precious metal production.

Peter Bures, Silver Crown's Chief Executive Officer, emphasized the strategic importance of this completed royalty transaction. "The PPX silver royalty together with the recently closed financing positions us to reach positive free cash flow in 2026 without the need to access the capital markets for working capital purposes," Bures stated. He further noted that the company now anticipates raising capital only for specific new royalty acquisitions in the foreseeable future, indicating a shift toward more selective growth strategies.

This transaction represents a significant milestone for Silver Crown Royalties, which currently holds five silver royalties in its portfolio. The company's business model offers investors exposure to precious metals while providing a natural hedge against currency devaluation and mitigating the adverse effects of production-related cost inflation. The completion of this royalty agreement demonstrates Silver Crown's continued execution of its strategy to generate free cash flow through strategic royalty acquisitions in promising mining projects.

The implications of this finalized royalty agreement extend beyond the immediate financial benefits for Silver Crown Royalties. For the mining industry, such royalty arrangements provide mining companies like PPX Mining with upfront capital to develop projects while sharing future production revenues. This model has become increasingly popular in the mining sector as it allows companies to fund development without taking on additional debt or diluting shareholder equity through traditional financing methods.

For investors, Silver Crown's achievement of positive free cash flow projections by 2026 represents a significant milestone in the company's development trajectory. The ability to generate consistent cash flow without relying on capital markets for working capital provides greater financial stability and potentially enhances shareholder returns. The royalty model also offers investors exposure to precious metals prices without the operational risks associated with direct mining operations, making it an attractive investment vehicle in the natural resources sector.

The completion of this royalty agreement comes at a time when silver demand continues to grow across multiple sectors, including industrial applications, jewelry, and investment products. As global economic conditions evolve, precious metals like silver often serve as important hedges against inflation and currency fluctuations, making royalty companies like Silver Crown positioned to benefit from these macroeconomic trends. The company's focus on silver specifically aligns with projections for continued industrial demand growth, particularly in renewable energy technologies and electronics manufacturing.

Curated from NewMediaWire

Burstable Editorial Team

Burstable Editorial Team

@burstable

Burstable News™ is a hosted solution designed to help businesses build an audience and enhance their AIO and SEO press release strategies by automatically providing fresh, unique, and brand-aligned business news content. It eliminates the overhead of engineering, maintenance, and content creation, offering an easy, no-developer-needed implementation that works on any website. The service focuses on boosting site authority with vertically-aligned stories that are guaranteed unique and compliant with Google's E-E-A-T guidelines to keep your site dynamic and engaging.