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 1% net smelter return (NSR) royalty on the Madre Sierra deposit, owned by Titiminas Silver Inc., located in Jauja, Peru. The acquisition, valued at US$2 million in cash plus additional share-based payments and contingent consideration, underscores the company's commitment to expanding its silver royalty portfolio.
The transaction involves a cash payment of US$2 million at closing, with US$1 million payable through the issuance of 38,401 units of Silver Crown at a price equal to the volume-weighted average trading price over the five days preceding the agreement. Each unit consists of one common share and half a warrant, with warrants exercisable at 150% of the issue price for two years. An additional US$1 million in contingent consideration will be settled through the issuance of similar units upon the first royalty payment following at least 30 days of continuous production at a rate of 70 tonnes per day or more.
This acquisition follows two previous 1% NSR royalties on the same project, aligning with Silver Crown's initial strategy to acquire the complete royalty package and eventually consolidate it into a silver-only royalty, as stated by CEO Peter Bures. "Once this acquisition is completed, we intend to move forward with our silver-only strategy on Titiminas' Madre Sierra project," Bures said. "In time, we believe this royalty will become a very significant silver ounce contributor for our company."
The Madre Sierra deposit is a silver-focused project, and Silver Crown's business model is designed to provide investors with precious metals exposure while mitigating risks associated with currency devaluation and cost inflation. The company currently holds six silver royalties, three of which are revenue-generating, and this acquisition expands its footprint in Peru.
The transaction is expected to close on or before October 31, 2026, subject to customary conditions, including approval from Cboe Canada and registration of the royalty on title. All securities issued will be on a prospectus-exempt basis and subject to statutory hold periods.
Silver Crown's strategic acquisitions are part of a broader trend in the royalty and streaming sector, where companies seek to secure long-term revenue streams from mining operations without bearing the capital costs and operational risks. By increasing its silver royalty interests, Silver Crown is positioning itself to benefit from potential increases in silver prices and production from the Madre Sierra project.
The company's focus on silver is notable given the metal's industrial and investment demand, which has been supported by its use in solar panels, electronics, and as a store of value. This acquisition not only diversifies Silver Crown's portfolio but also strengthens its position in the silver market.
Investors will be watching the closing of this deal, as it could significantly impact Silver Crown's future cash flows and growth trajectory. The company's proactive approach to consolidating royalties on high-potential projects like Madre Sierra demonstrates its commitment to delivering value to shareholders.
