Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has entered into a definitive agreement to acquire a third existing 1% net smelter return royalty on Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. The transaction, announced on September 3, 2026, involves a cash payment of US$2 million at closing, plus US$1 million in units and up to US$1 million in contingent consideration, marking a significant expansion of Silver Crown's royalty portfolio.
The agreement, dated September 2, 2026, provides that the US$1 million in units will be issued as 38,401 units, each consisting of one common share and one-half of one common share purchase warrant, priced at the volume weighted average trading price of the common shares on Cboe Canada for the five trading days immediately preceding the agreement date. Each whole warrant entitles the holder to acquire one common share at 150% of the closing issue price for 24 months. The contingent consideration of US$1 million will be satisfied through additional units upon Silver Crown's receipt of the first royalty payment following not less than 30 days of continuous production at a rate of at least 70 tonnes per day, with the unit price based on the five-trading-day volume weighted average trading price immediately preceding the trigger date. All securities issued are subject to Cboe Canada approval and will be issued on a prospectus-exempt basis with applicable hold periods.
Closing is expected on or before October 31, 2026, subject to customary conditions, Cboe Canada approval, and registration of the royalty on title to the project. 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.”
Silver Crown Royalties, founded by industry veterans, is a publicly traded silver royalty company with six silver royalties, three of which are revenue-generating. The company's business model offers investors precious metals exposure that acts as a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. This acquisition aligns with SCRi's strategy to minimize economic impact on mining projects while maximizing returns for shareholders.
The transaction underscores Silver Crown's commitment to expanding its silver royalty portfolio in prolific mining regions. For readers in Halifax and surrounding areas, this development highlights the ongoing activity in the global mining royalty sector, which can influence investment opportunities in precious metals. As Silver Crown continues to execute its silver-only strategy, the Madre Sierra project could become a significant source of silver ounces, potentially benefiting the company's shareholders and the broader mining industry. The acquisition also demonstrates the attractiveness of royalty financing for mining projects, providing upfront capital to operators like Titiminas Silver while allowing royalty companies to participate in future production revenue. For further information, Silver Crown Royalties Inc. can be reached at the contact details provided in the original release.
