Silver Crown Royalties Inc. (Cboe: SCRI, OTCQX: SLCRF, BF: QS0) has entered into a definitive agreement to acquire a third privately held 1% net smelter return royalty on the Madre Sierra deposit owned by Titiminas Silver Inc. in Jauja, Peru. The transaction, announced on September 3, 2026, involves a cash consideration of US$2,000,000 at closing, along with additional share-based payments and contingent consideration.
Under the terms of the agreement, Silver Crown will pay US$1,000,000 in cash and issue 38,401 units, each consisting of one common share and one-half of a common share purchase warrant, at a price based on the volume weighted average trading price of Silver Crown's shares on Cboe Canada for the five trading days preceding the agreement date. Each whole warrant will be exercisable at 150% of the issue price for a period of 24 months. An additional US$1,000,000 in contingent consideration will be satisfied through the issuance of similar units upon Silver Crown's receipt of the first royalty payment following at least 30 days of continuous production at a rate of at least 70 tonnes per day. The issue price for these units will be based on the five-day volume weighted average trading price immediately preceding the trigger date.
Peter Bures, CEO of Silver Crown, 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.”
The transaction is expected to close on or before October 31, 2026, subject to customary conditions precedent, including approval from Cboe Canada and registration of the royalty on title to the project. All securities issued in connection with the transaction will be on a prospectus-exempt basis and subject to statutory hold periods.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. It currently holds six silver royalties, three of which are revenue-generating. The company's business model aims to provide investors with precious metals exposure that acts as a hedge against currency devaluation while minimizing the impact of cost inflation associated with production. By acquiring this third royalty on the Madre Sierra deposit, Silver Crown strengthens its portfolio and aligns with its strategy of focusing on silver-only royalties.
This acquisition is significant for Silver Crown as it expands its asset base and potential revenue streams. The Madre Sierra deposit is located in Peru, a country with a rich mining history and favorable geology for precious metals. The additional royalty could contribute to Silver Crown's future silver ounce production, enhancing its ability to generate shareholder value.
Investors in Silver Crown and the broader mining royalty sector may view this acquisition as a positive step, as it demonstrates the company's commitment to growth through strategic acquisitions. The transaction also highlights the ongoing consolidation in the royalty space, as companies seek to diversify their portfolios and secure long-term revenue sources.
The completion of this acquisition will mark the third such royalty for Silver Crown on the Madre Sierra project, further entrenching its position in the region. With the company's focus on restructuring royalties into silver-only streams, this move aligns with its overarching corporate strategy and could set the stage for future growth opportunities.
As the transaction progresses, market participants will watch for regulatory approvals and the successful closing, which will solidify Silver Crown's expanded footprint in Peru's silver mining sector.
