Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has entered into a definitive agreement to acquire a third 1% net smelter return (NSR) royalty on the Madre Sierra deposit owned by Titiminas Silver Inc. in Jauja, Peru. This transaction, announced September 3, 2026, follows the company's strategy to consolidate royalties on the project and eventually restructure them into a silver-only royalty, as per its corporate mandate.
The acquisition involves a cash payment of US$2,000,000 at closing, along with US$1,000,000 payable through the issuance of 38,401 units of Silver Crown, each comprising one common share and one-half of one common share purchase warrant. The price per unit will be based on the volume-weighted average trading price of the common shares on Cboe Canada for the five trading days preceding the agreement date. Additionally, US$1,000,000 in contingent consideration will be satisfied through the issuance of additional units on the same basis once Silver Crown receives its first royalty payment following at least 30 days of continuous production at a rate of at least 70 tonnes per day. Each whole warrant will be exercisable at 150% of the applicable issue price for a period of 24 months.
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 closing of the transaction is expected on or before October 31, 2026, and is subject to customary conditions precedent, including approval from Cboe Canada and registration of the royalty on title to the project. All securities issued 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 precious metals exposure that serves as a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. By focusing on silver royalties, Silver Crown endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders.
This acquisition is part of Silver Crown's broader strategy to expand its portfolio of silver royalties, particularly in regions with significant silver potential. The Madre Sierra deposit in Peru is known for its silver-rich mineralization, and the addition of this third NSR royalty strengthens Silver Crown's position in the region. The company is committed to working with operators to ensure sustainable and efficient mining practices while providing investors with a pure-play silver royalty investment opportunity.
The transaction highlights Silver Crown's ability to identify and secure valuable royalty assets in a competitive market. By consolidating royalties on the Madre Sierra project, the company is positioning itself to benefit from future production and cash flows once the project reaches commercial operation.
Investors and stakeholders will be watching closely as the transaction progresses, with expectations that it will close smoothly given the clear strategic fit and the company's track record of executing similar deals.
