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 (NSR) 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$2,000,000 at closing, plus US$1,000,000 payable through the issuance of 38,401 units of Silver Crown, each consisting of one common share and one-half of a common share purchase warrant. 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 date. Additionally, US$1,000,000 in contingent consideration will be satisfied through the issuance of additional units upon Silver Crown's receipt of the first royalty payment following at least 30 days of continuous production at a rate of at least 70 tonnes per day. The warrants attached to these units will be exercisable at 150% of the applicable issue price for 24 months.
This acquisition is part of Silver Crown's broader strategy to consolidate the royalty package on the Madre Sierra project. Peter Bures, CEO of Silver Crown, noted in the announcement: “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.”
Silver Crown is a silver-focused royalty company with a mandate to provide investors with exposure to silver while mitigating the risks associated with operational costs and currency devaluation. The company currently holds six silver royalties, three of which are already generating revenue. The addition of this third royalty on Madre Sierra aligns with Silver Crown's goal of increasing its silver ounce contributions and further diversifying its portfolio.
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 title to the project. All securities issued in connection with the transaction will be on a prospectus-exempt basis and subject to statutory hold periods.
The move underscores Silver Crown's aggressive growth strategy in the silver royalty space. By securing multiple royalties on the same project, the company aims to streamline its interests and potentially convert them into a single silver-only royalty, which would simplify its revenue stream and enhance its attractiveness to investors seeking pure-play silver exposure. The Madre Sierra deposit, located in Peru's prolific mineral belts, is expected to contribute significantly to Silver Crown's future royalty income as production ramps up.
Investors and market observers will be watching the progress of this acquisition and the subsequent development of the Madre Sierra project, as it could materially impact Silver Crown's financial performance in the coming years. The company's proactive approach to consolidating royalties demonstrates its commitment to building a high-quality portfolio of silver assets.
