Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) announced on September 3, 2026, that it has entered into a definitive agreement to acquire a third privately held 1% net smelter return (NSR) royalty on the Madre Sierra deposit owned by Titiminas Silver Inc. in Jauja, Peru. This acquisition, valued at US$2,000,000 in cash plus additional share-based considerations, underscores Silver Crown's commitment to expanding its silver-focused royalty portfolio.
The transaction comprises a cash payment of US$2,000,000 at closing, along with the issuance of 38,401 units of Silver Crown, each consisting of one common share and half a warrant, valued at US$1,000,000. The price per unit will be based on the volume-weighted average trading price of Silver Crown's shares on Cboe Canada for the five trading days preceding the agreement. Additionally, contingent consideration of US$1,000,000 will be satisfied through the issuance of similar units upon Silver Crown receiving its first royalty payment after at least 30 days of continuous production at a rate of 70 tonnes per day or more. The warrants attached to these units will be exercisable at 150% of the respective issue price for 24 months.
Silver Crown's CEO, Peter Bures, emphasized the strategic intent behind the acquisition: "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." This move aligns with Silver Crown's business model, which focuses on acquiring silver royalties to provide investors with a hedge against currency devaluation while minimizing production cost inflation impacts.
The closing of the transaction is expected on or before October 31, 2026, subject to customary conditions, including regulatory approval from Cboe Canada and registration of the royalty on title to the project. This acquisition adds to Silver Crown's existing portfolio, which currently includes six silver royalties, three of which are revenue-generating. The company's strategy emphasizes maximizing shareholder returns while minimizing economic impact on mining projects.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. Its business model offers investors exposure to precious metals, particularly silver, with the potential for stable returns and growth. This latest acquisition is a step forward in consolidating its position in the silver royalty sector, particularly in Peru's mineral-rich regions.
The transaction is subject to standard forward-looking statements and risks, including those related to international operations, regulatory approvals, and the inherent uncertainties of mining production. However, Silver Crown's management remains optimistic about the future contributions of this royalty to its portfolio, highlighting the company's dedication to expanding its silver assets.
