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 in total consideration, underscores Silver Crown's commitment to expanding its silver royalty portfolio in line with its strategic mandate.
The acquisition consideration comprises US$2 million in cash payable at closing, US$1 million through the issuance of 38,401 units (each consisting of one common share and one-half warrant) at a price based on the volume-weighted average trading price (VWAP) of Silver Crown's shares on Cboe Canada for the five trading days preceding the agreement date, and US$1 million in contingent consideration payable in additional units upon achieving a production milestone. The contingent units will be issued when Silver Crown receives its first royalty payment following at least 30 days of continuous production at a rate of 70 tonnes per day or more, with the price based on the five-day VWAP immediately preceding that trigger date.
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 Madre Sierra project, located in the prolific mining region of Jauja, Peru, is expected to contribute meaningful silver production. Silver Crown's strategy focuses on acquiring royalties with a silver component, which provides investors with a natural hedge against currency devaluation while mitigating cost inflation risks. The company currently holds six silver royalties, three of which are revenue-generating.
The transaction is subject to customary closing conditions, including approval from Cboe Canada and registration of the royalty on title to the project. Closing is expected to occur on or before October 31, 2026. All securities issued in connection with the transaction will be on a prospectus-exempt basis and subject to statutory hold periods.
This acquisition aligns with Silver Crown's broader initiative to consolidate royalty interests on the Madre Sierra project and potentially restructure them into a single silver-only royalty. By increasing its exposure to silver production, Silver Crown aims to maximize returns for shareholders while minimizing the economic impact on mining operations.
The transaction represents a strategic step for Silver Crown as it continues to build a portfolio of high-quality silver royalties. The company's focus on silver is particularly relevant given the metal's role as a store of value and its industrial applications. With this acquisition, Silver Crown is positioning itself to benefit from the anticipated growth in silver demand.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. Its business model offers precious metals exposure with a natural hedge against currency devaluation and reduced exposure to cost inflation. The company trades on Cboe Canada under the symbol SCRI, on OTCQX as SLCRF, and on the Frankfurt Stock Exchange as QS0.
Forward-looking statements in this release involve risks and uncertainties, including the timing and completion of the transaction, satisfaction of conditions precedent, and future royalty payments. Actual results may differ materially from those anticipated. Silver Crown undertakes no obligation to update forward-looking information except as required by law.
