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 royalty on the Madre Sierra deposit owned by Titiminas Silver Inc. in Jauja, Peru. The transaction, announced on September 3, 2026, involves a cash payment of US$2,000,000 at closing, plus an additional US$1,000,000 payable through the issuance of 38,401 units of Silver Crown, each comprising one common share and one-half of one common share purchase warrant. The price per unit will be based on the volume weighted average trading price of the common shares on Cboe Canada for the five trading days preceding the agreement date. Each whole warrant will entitle the holder to acquire one common share at an exercise price equal to 150% of the closing issue price for a period of 24 months following closing.
In addition, the agreement includes US$1,000,000 of contingent consideration to be satisfied through the issuance of additional units on the same one-share-and-one-half-warrant basis upon Silver Crown’s receipt of the first royalty payment under the Royalty, following not less than 30 days of continuous production at a rate of at least 70 tonnes per day. The price per unit for this contingent issuance will be determined by the five-trading-day volume weighted average trading price immediately preceding the trigger date, with warrants exercisable at 150% of that price for 24 months. All securities issued in connection with the transaction are subject to approval by Cboe Canada and will be issued on a prospectus-exempt basis, subject to applicable statutory hold periods and resale restrictions.
The closing is expected to occur on or before October 31, 2026, and is subject to customary conditions precedent, approval by Cboe Canada, and registration of the Royalty on title to the project. Peter Bures, CEO of Silver Crown, commented, “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.”
This acquisition aligns with Silver Crown’s business model, which focuses on silver royalties to provide investors with precious metals exposure while mitigating the negative impact of cost inflation associated with production. The company currently holds six silver royalties, three of which are revenue-generating. By expanding its portfolio with this third royalty on the Madre Sierra deposit, Silver Crown strengthens its position in the silver market and reinforces its commitment to maximizing shareholder returns.
The transaction is part of Silver Crown’s broader strategy to acquire and consolidate royalties, with the potential to restructure them into silver-only royalties. This approach is designed to minimize the economic impact on mining projects while maximizing returns for shareholders. The acquisition of this third royalty is a significant step forward in executing that strategy, as it adds to the company’s existing interests in the Madre Sierra project.
Forward-looking statements in this release involve risks and uncertainties, including the anticipated timing and completion of the transaction, satisfaction of conditions precedent, and receipt of future royalty payments. There can be no assurance that such statements will prove accurate, and actual results could differ materially. Silver Crown undertakes no obligation to update forward-looking information except as required by applicable law.
