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 Strategic Advisor. The offering consists of 424,500 units at $7.00 per unit, with each unit comprising one common share and one common share purchase warrant. This investment represents a significant endorsement of Silver Crown's business model and growth strategy in the silver royalty sector.
Michael Gentile, a CFA and prominent strategic investor in the junior mining sector, brings extensive capital markets experience and industry connections to Silver Crown. He currently serves as the largest shareholder in over 25 junior mining companies and holds board positions and advisory roles across the industry. In 2021, he co-founded Bastion Asset Management, a Montreal-based hedge fund now managing over C$700 million in assets, following his tenure as Vice President and Senior Portfolio Manager at Formula Growth Ltd from 2001 to 2018.
Peter Bures, Chief Executive Officer of Silver Crown, 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 that the company has identified and is advancing, while also bolstering general working capital. This positions Silver Crown to expand its portfolio and capitalize on the favorable outlook for rising silver prices. Additional information about the company's operations can be found at https://silvercrownroyalties.com.
Michael Gentile expressed enthusiasm about joining Silver Crown as a cornerstone shareholder and strategic advisor, noting the massive value creation opportunity he sees in the silver royalty space as silver prices reach new record highs. He described Silver Crown as a tightly held, well-structured royalty platform that he believes is deeply undervalued and not fully appreciated by the market. Gentile stated he looks forward to helping the company accelerate growth initiatives and increase 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 a three-year period. He will also be entitled to participate in Silver Crown's Restricted Share Unit program in accordance with the company's omnibus equity incentive plan. Silver Crown Royalties, which trades under symbols Cboe:SCRI, OTCQX:SLCRF, and FRA:QS0, is a publicly traded silver royalty company focused on generating free cash flow through its current portfolio of five silver royalties. The company's business model offers investors exposure to precious metals while providing a natural hedge against currency devaluation and mitigating production-related cost inflation effects.
The strategic investment and advisory appointment come at a time when silver markets are showing strength, potentially creating favorable conditions for royalty companies like Silver Crown. The involvement of an investor with Gentile's track record and network could enhance the company's ability to identify and secure valuable royalty opportunities while improving its visibility within the investment community. For market participants, this development signals growing institutional interest in the silver royalty sector and highlights Silver Crown's positioning to benefit from both rising silver prices and strategic industry partnerships.
