Silver Crown Royalties Inc. has completed a non-brokered private placement with strategic investor Michael Gentile, raising approximately C$3 million through the issuance 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 following the offering's closing date.
The capital raised will be directed primarily toward specific accretive silver royalties that the company has identified and is advancing, with remaining funds allocated to bolstering general working capital. This strategic investment positions Silver Crown to expand its portfolio and capitalize on the favorable outlook for rising silver prices. 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.
Following the transaction, Michael Gentile now indirectly owns and exercises control over 424,500 common shares, 424,500 warrants, and 50,000 stock options, representing approximately 18.52% of Silver Crown's issued and outstanding common shares on a partially diluted basis. Prior to this investment, Gentile held no direct or indirect ownership of the company's securities. The common shares and warrants underlying the units are subject to a statutory hold period of four months plus one day from the closing date.
As required by securities regulations, Gentile has filed an Early Warning Report regarding 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. The securities issued in this private placement have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption.
This investment represents a significant vote of confidence in Silver Crown's royalty-focused business model at a time when silver markets show increasing investor interest. The company currently holds five silver royalties and focuses on generating free cash flow while minimizing economic burdens on mining projects. The transaction was completed without payment of finder's fees or commissions, and the securities were acquired strictly for investment purposes.
The strategic nature of this investment provides Silver Crown with both capital and an experienced investor as the company seeks to expand its royalty portfolio. For investors, this development signals growing institutional interest in silver royalty companies and highlights the sector's potential for providing precious metals exposure with reduced operational risk compared to traditional mining investments.
