Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) announced on September 3, 2026, that it 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, valued at US$4 million, is structured with a cash payment of US$2 million and the issuance of units and contingent consideration, reflecting Silver Crown’s commitment to expanding its silver royalty portfolio.
The acquisition includes US$1 million payable at closing through the issuance of 38,401 units, 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. Each whole warrant will entitle the holder to acquire one common share at an exercise price equal to 150% of that price for 24 months following closing. An additional US$1 million in contingent consideration will be satisfied through the issuance of units on the same terms upon 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 issuance of all securities is subject to Cboe Canada approval and applicable statutory hold periods.
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 closing is expected on or before October 31, 2026, subject to customary conditions precedent, including Cboe Canada approval and registration of the royalty on title. This acquisition is Silver Crown’s third royalty on the Madre Sierra project, bringing its total royalty portfolio to six silver royalties, three of which are revenue-generating.
The transaction underscores Silver Crown’s focus on silver royalties, which provide investors with precious metals exposure that can hedge against currency devaluation while minimizing the impact of cost inflation associated with production. By acquiring royalties rather than operating mines, the company aims to minimize the economic impact on mining projects while maximizing returns for shareholders.
The Madre Sierra deposit is an advanced-stage silver project in Peru, a country with a rich mining history and favorable geology for silver deposits. The additional royalty positions Silver Crown to benefit from future production at Madre Sierra, contributing to its goal of becoming a significant silver royalty company.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. Its business model focuses on acquiring and managing silver royalties, offering investors a pure-play silver investment vehicle. The company’s strategy includes acquiring royalties on development-stage projects like Madre Sierra, with the potential to restructure them into silver-only royalties to align with its mandate.
Forward-looking statements in the release indicate that the company anticipates completing the transaction and receiving future royalty payments, but these are subject to risks and uncertainties, including regulatory approvals and operational factors at the mining site.
