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. in Jauja, Peru. The transaction, valued at up to US$4 million, underscores Silver Crown's commitment to expanding its silver-focused royalty portfolio.
Under the terms of the agreement, Silver Crown will pay US$2 million in cash at closing, issue US$1 million worth of units (each comprising one common share and one-half warrant), and provide an additional US$1 million in contingent consideration upon the first royalty payment following sustained production. The contingent payment will also be settled in units, with warrants exercisable at 150% of the issue price for 24 months. All securities are subject to Cboe Canada approval and will be issued on a prospectus-exempt basis.
This acquisition follows two previous royalty purchases on the same project, bringing Silver Crown's total interest in Madre Sierra to a 3% NSR. The company's CEO, Peter Bures, 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 deposit is located in Peru, a region known for its rich silver mining history. By consolidating these royalties, Silver Crown aims to strengthen its position in the silver market, providing investors with a hedge against currency devaluation while mitigating cost inflation risks associated with production.
The transaction is expected to close on or before October 31, 2026, pending customary conditions, including the approval of Cboe Canada and the registration of the royalty on title. This strategic move aligns with Silver Crown's business model of minimizing economic impact on mining projects while maximizing shareholder returns.
Silver Crown Royalties is a publicly traded silver royalty company founded by industry veterans. It currently holds six silver royalties, three of which are revenue-generating. The company is listed on Cboe Canada under the symbol SCRI, on the OTCQX under SLCRF, and on the Frankfurt Stock Exchange under QS0. For more information, visit the company's website or contact Peter Bures, Chairman and CEO.
This announcement contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those anticipated. The company undertakes no obligation to update these statements except as required by law. This document does not constitute an offer to sell securities in any jurisdiction.
