Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has taken another step in consolidating its position in the silver royalty space by entering into a definitive agreement to acquire a third 1% net smelter return (NSR) royalty on the Madre Sierra deposit held by Titiminas Silver Inc. in Jauja, Peru. The transaction, announced on September 3, 2026, involves a cash consideration of US$2 million at closing, plus US$1 million payable through the issuance of units, and an additional US$1 million in contingent consideration tied to production milestones.
This acquisition is part of Silver Crown's broader strategy to consolidate the royalty package on Madre Sierra and eventually restructure it into a silver-only royalty, aligning with the company's mandate. CEO Peter Bures emphasized the significance of the deal: “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.”
Silver Crown currently holds six silver royalties, three of which are already generating revenue. The company's business model is designed to offer investors exposure to precious metals while mitigating risks associated with inflation and currency devaluation. By focusing on silver royalties, Silver Crown aims to minimize the economic impact on mining projects while maximizing shareholder returns.
The transaction details include a cash payment of US$2 million at closing, the issuance of 38,401 units at a price per unit equal to the volume weighted average trading price of Silver Crown's common shares on Cboe Canada for the five trading days preceding the agreement date. Each unit consists of one common share and half a warrant, with each whole warrant exercisable at 150% of the issue price for 24 months. The contingent consideration of US$1 million will be satisfied through the issuance of additional units upon the 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 price per unit for the contingent shares will be based on the five-day volume weighted average trading price immediately preceding the trigger date, with warrants exercisable at 150% of that price for 24 months.
Closing is expected by October 31, 2026, subject to customary conditions, including approval from Cboe Canada and registration of the royalty on title to the project. The issuance of securities will be on a prospectus-exempt basis and subject to statutory hold periods.
The acquisition of this third royalty on Madre Sierra underscores Silver Crown's commitment to building a robust portfolio of silver-focused royalties. Madre Sierra is a promising deposit, and this move positions the company to benefit from future production. As the company consolidates its interests, it aims to restructure the royalties into a silver-only form, which would align with its strategic objective of providing pure-play silver exposure to its shareholders.
Investors and stakeholders will be watching closely as Silver Crown continues to execute its growth strategy in the precious metals sector. The completion of this transaction will mark another milestone in the company's journey to become a significant player in the silver royalty space.
