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 US$1,000,000 payable through the issuance of 38,401 units of Silver Crown, each consisting of one common share and one-half warrant. An additional US$1,000,000 in contingent consideration will be settled through the issuance of further units once the company receives its first royalty payment following at least 30 days of continuous production at a rate of at least 70 tonnes per day.
This acquisition marks the third royalty Silver Crown has secured on the Madre Sierra project, a strategic move that aligns with the company's mandate to focus on silver-only royalties. CEO Peter Bures noted that the initial intent was to acquire the complete royalty package and eventually restructure existing royalties into a silver-only structure. Once the current acquisition is completed, the company plans to proceed with that strategy on the Titiminas project. Bures expressed confidence that this royalty will become a significant contributor of silver ounces to the company's portfolio over time.
The transaction is subject to customary conditions, including approval from Cboe Canada and registration of the royalty on the project's title. Closing is expected on or before October 31, 2026. The securities issued in connection with the deal will be on a prospectus-exempt basis and subject to statutory hold periods.
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's business model offers investors exposure to precious metals, providing a hedge against currency devaluation while mitigating the negative impact of cost inflation. By acquiring additional royalties on high-potential projects like Madre Sierra, Silver Crown continues to expand its asset base and enhance its growth prospects.
The Madre Sierra deposit is located in a prolific mining region in Peru, and the addition of this royalty strengthens Silver Crown's presence in Latin America. The company's strategy of consolidating royalties on the project could lead to operational efficiencies and a more substantial revenue stream as the mine progresses toward production.
Investors should note that forward-looking statements in this announcement involve risks and uncertainties, including the timing of closing, the satisfaction of conditions, and the potential for future royalty payments. However, the strategic rationale behind the acquisition is clear: it supports Silver Crown's commitment to building a robust portfolio of silver-focused royalties that can deliver long-term value to shareholders.
