Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has entered into a definitive agreement to acquire a third privately held 1% net smelter return royalty on Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. This acquisition, announced on September 3, 2026, underscores the company's commitment to expanding its precious metals portfolio while advancing its silver-only royalty strategy.
Under the terms of the agreement, Silver Crown will pay US$2,000,000 in cash at closing, along with US$1,000,000 payable through the issuance of 38,401 units, each consisting of one common share and one-half warrant. The price per unit will be based on the volume-weighted average trading price over the five trading days prior to the agreement date. Additionally, the agreement includes US$1,000,000 in contingent consideration, payable in units upon the receipt of the first royalty payment after at least 30 days of continuous production at a rate of 70 tonnes per day or more. These warrants will be exercisable at 150% of the applicable issue price for 24 months.
Peter Bures, CEO of Silver Crown, stated, "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 transaction is expected to close on or before October 31, 2026, subject to customary conditions, including approval from Cboe Canada and registration of the royalty on title. All securities issued will be on a prospectus-exempt basis and subject to hold periods.
This acquisition follows previous purchases of similar royalties on the same project, reflecting Silver Crown's strategy to consolidate its interests. The company currently holds six silver royalties, three of which are generating revenue. By increasing its stake in Madre Sierra, Silver Crown aims to strengthen its position in the silver market while mitigating risks associated with production costs.
Madre Sierra is a significant silver project in Peru, a country known for its rich mineral resources. The acquisition aligns with Silver Crown's business model, which focuses on providing investors with exposure to precious metals as a hedge against currency devaluation, while minimizing the negative impact of cost inflation. The company's approach emphasizes maximizing shareholder returns and reducing economic impact on mining projects.
Silver Crown's management believes that consolidating these royalties will eventually allow for a restructuring into a silver-only interest, which would align with its mandate and potentially enhance the value of its portfolio. The company remains dedicated to identifying opportunities that offer long-term growth and stability.
This move is part of a broader trend in the royalty and streaming sector, where companies seek to acquire diversified interests to balance risk and reward. As silver continues to be a key industrial and investment metal, Silver Crown's expanded footprint in Peru positions it to benefit from future demand.
Investors and market observers will be watching the closing of this transaction and the subsequent performance of the royalty as the project develops. With the additional acquisition, Silver Crown is poised to increase its silver ounce contributions, potentially boosting its financial outlook.
