Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) announced on September 16, 2026, the completion of its previously announced acquisition of a third existing 1% net smelter return royalty on Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. The acquisition, initially disclosed in a September 3, 2026 news release, marks another step in Silver Crown's strategy to build a portfolio of silver royalties that generate free cash flow.
Under the terms of the agreement, Silver Crown paid US$2,000,000 in cash at closing and issued 38,401 units valued at US$1,000,000. Each unit consists of one common share and one-half of one common share purchase warrant. The units were priced at the volume-weighted average trading price of the common shares on Cboe Canada for the five trading days immediately preceding the definitive royalty purchase and sale agreement dated September 2, 2026. Each whole warrant entitles the holder to acquire one common share at an exercise price equal to 150% of the closing issue price for 24 months following closing.
Additionally, Silver Crown will pay up to US$1,000,000 in contingent consideration, satisfied through the issuance of additional units on the same one-share-and-one-half-warrant basis. This payment is triggered upon Silver Crown's receipt of the first royalty payment following not less than 30 days of continuous production at the Madre Sierra project at a rate of at least 70 tonnes per day. Any such units will be issued at a price per unit equal to the five-trading-day volume-weighted average trading price of the common shares immediately preceding the trigger date, with each whole warrant exercisable at 150% of that price for 24 months.
All securities issued in connection with the acquisition were issued on a prospectus-exempt basis, subject to applicable statutory hold periods and resale restrictions, and were approved for issuance by Cboe Canada. The royalty is registered on title to the project, and registration of the assignment of the royalty to Silver Crown will follow in the ordinary course.
Silver Crown Royalties, founded by seasoned industry professionals, is a publicly traded silver royalty company dedicated to generating free cash flow. The company currently holds eight silver royalties. Its business model offers investors exposure to precious metals, providing a natural hedge against currency devaluation while mitigating the adverse effects of production-related cost inflation. Silver Crown strives to minimize the economic burden on mining projects while simultaneously maximizing shareholder returns.
This acquisition matters for the raw materials mining industry as it demonstrates continued interest in royalty financing as a means to fund mining projects without directly burdening operators with debt. For readers, it highlights the growing attractiveness of silver royalties as an investment vehicle that provides leverage to silver prices while offering downside protection through royalty structures. The Madre Sierra project, upon reaching production, could contribute to global silver supply, and Silver Crown's expanding portfolio underscores the strategic importance of silver as both a precious metal and an industrial commodity. The contingent consideration tied to production milestones aligns Silver Crown's interests with the project's success, potentially leading to further royalty consolidations in the region. As silver demand rises in renewable energy and electronics, such royalty deals may become more common, offering investors a way to participate in the sector with reduced operational risk.
