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, involves a cash payment of US$2,000,000 at closing, along with US$1,000,000 payable through the issuance of 38,401 units of Silver Crown, each consisting of one common share and one-half warrant. An additional US$1,000,000 in contingent consideration will be settled through the issuance of units upon the first royalty payment following at least 30 days of continuous production at a rate of 70 tonnes per day or more. The agreement is subject to customary closing conditions, including the approval of Cboe Canada and the registration of the royalty on title.
This acquisition marks the third 1% NSR on the Madre Sierra project that Silver Crown has secured, following earlier purchases of two other royalties on the same property. The company's CEO, Peter Bures, stated that the initial intent was to acquire the complete royalty package and eventually restructure the existing royalties into a silver-only royalty, aligning with the company's mandate. Once this acquisition is completed, Silver Crown intends to proceed with its silver-only strategy on the Madre Sierra project, which Bures believes will become a significant silver ounce contributor.
The Madre Sierra deposit is located in the prolific silver mining region of Jauja, Peru, an area known for its rich mineral resources. By consolidating these royalties, Silver Crown is positioning itself to benefit from future production at the project, enhancing its portfolio of silver-focused assets. The company currently holds six silver royalties, three of which are already generating revenue. This acquisition underscores Silver Crown's commitment to expanding its silver exposure and providing investors with a hedge against currency devaluation while minimizing cost inflation impacts.
The transaction is expected to close on or before October 31, 2026, pending regulatory approvals and the registration of the royalty. All securities issued in connection with the transaction will be on a prospectus-exempt basis, subject to applicable hold periods. Silver Crown's forward-looking statements highlight the potential risks and uncertainties inherent in such transactions, including delays in mine construction, production variability, and fluctuations in commodity prices.
For the reader, this development signals a continued consolidation in the royalty space, with Silver Crown actively expanding its silver royalties. The acquisition not only strengthens the company's asset base but also demonstrates the growing interest in silver as a strategic metal, particularly in light of its industrial applications and role in the transition to green technologies. As the project progresses, Silver Crown could see significant revenue increases, which may positively impact its shareholders. This move aligns with the broader trend of royalty companies securing interests in promising projects without bearing the operational risks of mining.
