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 Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. The transaction, announced on September 3, 2026, underscores Silver Crown's commitment to building a significant silver royalty portfolio, with the eventual aim of restructuring the royalties into a silver-only stream.
Under the terms of the agreement dated September 2, 2026, Silver Crown will pay US$2,000,000 in cash at closing, plus US$1,000,000 through the issuance of 38,401 units, each comprising one common share and half a warrant. The issue 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. Each whole warrant will be exercisable at 150% of that price for 24 months. Additionally, US$1,000,000 in contingent consideration will be payable through the issuance of additional 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. The closing is expected on or before October 31, 2026, subject to customary conditions, Cboe Canada approval, and registration of the royalty on title.
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 acquisition of this third royalty on the Madre Sierra project follows Silver Crown's previously announced acquisitions of two other 1% NSRs on the same project, indicating a deliberate consolidation strategy. By increasing its exposure to the project, Silver Crown aims to enhance its silver ounce contributions, aligning with its business model of providing investors with precious metals exposure while minimizing the negative impact of cost inflation. The company currently holds six silver royalties, three of which are revenue-generating.
The Madre Sierra deposit is located in Peru, a country with a rich mining history and significant silver production. This acquisition strengthens Silver Crown's position in the region and diversifies its royalty portfolio. The transaction is subject to regulatory approvals, including that of Cboe Canada, and the issuance of securities will be on a prospectus-exempt basis, with statutory hold periods applying.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. Its strategy focuses on acquiring existing royalties and streaming agreements, with an emphasis on silver. The company aims to maximize returns for shareholders while minimizing the economic impact on mining operations. This acquisition is a step forward in executing that strategy, potentially leading to a more substantial and focused silver royalty stream from the Madre Sierra project.
The forward-looking statements in this release involve risks and uncertainties, including the timing and completion of the transaction, receipt of regulatory approvals, and the potential for future royalty payments. Actual results could differ materially from those projected. The company undertakes no obligation to update these statements except as required by law.
