Silver Crown Royalties Inc. (Cboe: SCRI, OTCQX: SLCRF, BF: QS0) has entered into a definitive silver royalty agreement dated October 31, 2026, with Soma Gold Corp. to acquire a royalty on 90% of the silver produced from Soma's producing El Bagre Gold Mining Complex in Antioquia, Colombia, including the Cordero underground mine. The purchase price is US$10,000,000 in cash, according to a release distributed via NEWMEDIAWIRE.
The El Bagre complex has been in continuous production for over a decade and currently processes ore from the Cordero underground mine through an on-site gold processing plant. The royalty structure includes minimum deliveries: during the delivery period, Silver Crown will receive the greater of 90% of payable silver produced and scheduled minimum deliveries totaling 305,500 ounces of silver over approximately five and a half years, paid quarterly in cash at the LBMA silver price less a fixed 3% deduction. Thereafter, the royalty converts to a 7.5% net smelter return royalty on silver for the life of the operation.
The transaction is expected to be immediately accretive to Silver Crown on a per-share basis, on both attributable silver ounces and cash flow, and is expected to increase the company's attributable silver ounce revenue by approximately 29% in 2027 and 57% in 2028. The royalty adds a third producing jurisdiction to the portfolio, reducing concentration in Peru, and increases Silver Crown's royalty count to nine silver royalties across seven projects. The purchase price represents less than 6% of Silver Crown's current market capitalization.
Peter Bures, Chairman and CEO of Silver Crown, commented: "El Bagre is exactly the kind of asset our strategy is built around: a producing mine with a long operating history, an experienced operator, and silver that is a by-product to the operator but meaningful to us. The minimum delivery schedule gives our shareholders visibility on more than 300,000 ounces of silver over the next five years, with a life-of-mine tail behind it, and the acquisition is immediately accretive on every metric we track."
Geoff Hampson, Chairman and CEO of Soma Gold, said: "We are pleased to have successfully negotiated this transaction with SCRi, a valued capital provider. We appreciate their constructive approach and confidence in Soma Gold's strategy and assets."
The purchase price is payable in two tranches. The first tranche of US$3,000,000 (less a US$75,000 work fee previously paid) will be paid at closing, expected on or before November 30, 2026, at which time the royalty will be granted at 30% of its full terms and Soma's obligations will be guaranteed by its Colombian operating subsidiary, Operadora Minera S.A.S. The second tranche of US$7,000,000 will be paid following the discharge of the security held by Soma's existing gold financier and the registration of first-ranking security in favor of Silver Crown, at which time the royalty will increase to 100% of its full terms. Soma has agreed to use best efforts to complete the discharge by December 31, 2026; if not completed by that date, Silver Crown will have the right to require Soma to repurchase the royalty for US$3,000,000 plus interest and the royalty payable for the preceding quarter. Closing of the first tranche is subject to customary conditions, including delivery of Colombian law security documents and legal opinions and acceptance of Cboe Canada.
The El Bagre Gold Mining Complex is located in the Bajo Cauca region of the Department of Antioquia, Colombia, approximately 200 kilometers northeast of Medellín, and is 100% owned and operated by Soma through Operadora Minera S.A.S. The complex comprises the Cordero underground mine and an on-site gold processing plant. Further details are available in the original release at www.newmediawire.com.
