Silver Crown Royalties Acquires Physical Silver to Strengthen Financial Position

Silver Crown Royalties Inc. has acquired 1,000 ounces of physical silver in a strategic financial maneuver that underscores the company's approach to maintaining robust financial reserves. The purchase was completed at an average price of $30.65 per ounce, representing an 8% discount to the 20-day volume-weighted average price and an 11% discount to recent market highs. The total investment of US$30,650 was derived from a spot price of US$30.15 per ounce plus a modest premium of US$0.50 per ounce.

The physical silver will be stored with Money Metals Depository LLC, with the precise storage location pending final confirmation. This storage arrangement ensures the security and proper handling of the company's newly acquired precious metal assets while maintaining accessibility for potential future needs.

Peter Bures, the company's Chief Executive Officer, explained the rationale behind the purchase, emphasizing the company's desire to maintain a prudent working capital position while diversifying away from traditional currency holdings. "We feel it is only prudent as a silver royalty company to convert a portion of our cash to physical silver," Bures stated. This strategic move reflects the company's commitment to aligning its financial assets with its core business focus in the silver sector.

The transaction represents a strategic pivot for Silver Crown Royalties, which currently holds four silver royalties, three of which are already generating revenue. By converting cash received from PPX into physical silver bullion, the company is demonstrating its commitment to providing investors with a natural hedge against potential currency devaluation. This approach is particularly significant given current economic uncertainties and inflationary pressures affecting global markets.

This approach aligns with the company's broader business model, which seeks to minimize economic risks associated with mining projects while maximizing potential returns for shareholders. The silver acquisition reflects a deliberate strategy of maintaining financial flexibility and tangible asset value. The move positions Silver Crown Royalties to better withstand market volatility while maintaining the liquidity needed to pursue future royalty opportunities in the silver mining sector.