Silver Crown Royalties Inc. has entered into a definitive silver royalty agreement with Soma Gold Corp. to acquire a royalty on 90% of the silver produced from Soma's producing El Bagre Gold Mining Complex in Antioquia, Colombia, for US$10 million in cash. The transaction, announced via NEWMEDIAWIRE, marks Silver Crown's third producing jurisdiction and increases its royalty count to nine silver royalties across seven projects.
The El Bagre complex has been in continuous production for over a decade and currently processes ore from the Cordero underground mine through an on-site gold processing plant. The royalty structure includes minimum deliveries of 305,500 ounces of silver over approximately five and a half years, paid quarterly in cash at the LBMA silver price less a fixed 3% deduction. After the delivery period, the royalty converts to a 7.5% net smelter return royalty on silver for the life of the operation.
Silver Crown expects the transaction to be immediately accretive on a per share basis, on both attributable silver ounces and cash flow. The company projects an approximate 29% increase in attributable silver ounce revenue in 2027 and 57% in 2028. The purchase price represents less than 6% of Silver Crown's current market capitalization, which the company highlights as efficient capital deployment.
"El Bagre is exactly the kind of asset our strategy is built around: a producing mine with a long operating history, an experienced operator, and silver that is a by-product to the operator but meaningful to us," said Peter Bures, Chairman and CEO of Silver Crown. "The minimum delivery schedule gives our shareholders visibility on more than 300,000 ounces of silver over the next five years, with a life-of-mine tail behind it."
The acquisition also reduces Silver Crown's concentration in Peru by adding Colombia as a third producing jurisdiction. The first tranche of US$3 million is payable at closing, expected on or before November 30, 2026, at which time the royalty will be granted at 30% of its full terms. The second tranche of US$7 million will be paid following the discharge of security held by Soma's existing gold financier and the registration of first-ranking security in favour of Silver Crown, at which time the royalty increases to 100% of its full terms. Soma has agreed to use best efforts to complete the discharge by December 31, 2026.
The El Bagre Gold Mining Complex is located in the Bajo Cauca region of the Department of Antioquia, approximately 200 kilometres northeast of Medellín, and is 100% owned and operated by Soma through Operadora Minera S.A.S. Further details are available in the original release on www.newmediawire.com.
