Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) has entered into a definitive agreement to acquire a third 1% net smelter return royalty on the Madre Sierra deposit owned by Titiminas Silver Inc. in Jauja, Peru. The transaction, announced on September 3, 2026, involves a cash payment of US$2 million at closing, plus US$1 million payable through the issuance of 38,401 units of Silver Crown, each consisting of one common share and half a warrant. An additional US$1 million in contingent consideration will be paid in units upon the receipt of the first royalty payment after 30 days of continuous production at a rate of at least 70 tonnes per day.
This acquisition marks the third royalty Silver Crown has secured on the Madre Sierra project, aligning with the company's strategy to consolidate royalties and potentially restructure them into a silver-only royalty, as stated by CEO Peter Bures. The move underscores Silver Crown's commitment to expanding its silver-focused portfolio, which currently includes six silver royalties, three of which are generating revenue. The company's business model aims to provide investors with exposure to precious metals while mitigating risks associated with currency devaluation and cost inflation.
The closing of the transaction is expected on or before October 31, 2026, subject to customary conditions, including the approval of Cboe Canada and the registration of the royalty on the project's title. All securities issued in connection with the transaction will be on a prospectus-exempt basis and subject to statutory hold periods.
This acquisition is significant as it strengthens Silver Crown's position in the silver royalty sector, particularly in Peru, a major silver-producing country. By consolidating royalties on the Madre Sierra deposit, the company is positioning itself to benefit from potential future production, which could contribute substantially to its silver ounce portfolio. The move also reflects a broader trend of royalty companies seeking to streamline their assets and focus on high-value commodities like silver, which has seen increased demand due to its industrial applications and investment appeal.
Silver Crown's proactive approach in acquiring and potentially restructuring royalties demonstrates its dedication to maximizing shareholder value while minimizing the economic impact on mining projects. As the company continues to expand its portfolio, it remains focused on its mandate of becoming a leading silver royalty company, offering investors a unique opportunity to gain exposure to the precious metal without the operational risks associated with mining.
