Silver Crown Royalties Inc. (Cboe:SCRI, OTCQX:SLCRF, BF:QS0) announced on September 16, 2026, the completion of its acquisition of a third 1% net smelter return royalty on Titiminas Silver Inc.'s Madre Sierra deposit in Jauja, Peru. The deal, initially announced on September 3, 2026, adds to Silver Crown's existing royalty interests on the project, consolidating its position in the emerging silver mining district.
The acquisition involved a cash payment of US$2,000,000 at closing, plus US$1,000,000 satisfied through the issuance of 38,401 units of Silver Crown. Each unit comprises one common share and one-half of one common share purchase warrant, issued at a price per unit equal to the volume-weighted average trading price of the common shares on Cboe Canada for the five trading days immediately preceding the definitive 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 basis, payable upon receipt of the first royalty payment following not less than 30 days of continuous production at the 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 immediately preceding the trigger date, with each whole warrant exercisable at 150% of that price for 24 months.
The royalty is registered on title to the project, and registration of the assignment to Silver Crown will follow in the ordinary course. All securities issued in connection with the acquisition were on a prospectus-exempt basis, subject to statutory hold periods and resale restrictions, and were approved for issuance by Cboe Canada.
This acquisition matters because it further solidifies Silver Crown's strategy of generating free cash flow through silver royalties. The company, founded by seasoned industry professionals, now holds eight silver royalties. Its business model offers investors exposure to precious metals, providing a natural hedge against currency devaluation while mitigating production-related cost inflation. By minimizing the economic burden on mining projects, Silver Crown aims to maximize shareholder returns. For the raw materials mining industry, this deal highlights the growing interest in royalty financing as a means to fund exploration and development, particularly in silver, a metal critical for industrial applications and green technologies. The Madre Sierra project's progress, with the contingent consideration tied to production milestones, signals potential near-term silver output from Peru, which could contribute to global supply. Readers should note that the forward-looking statements in the release are subject to risks, including those related to mining operations, commodity prices, and regulatory changes. For more information, visit Silver Crown Royalties' website.
