Silver Crown Royalties Expands Silver Portfolio with Third 1% NSR on Peru's Madre Sierra Project

Silver Crown Royalties Inc. (Cboe: SCRI, OTCQX: SLCRF, BF: QS0) has announced 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 US$4 million, underscores Silver Crown's commitment to expanding its silver royalty portfolio.

The consideration includes US$2 million in cash, US$1 million payable through the issuance of Silver Crown units, and US$1 million in contingent consideration. The contingent payment is triggered upon achieving continuous production of at least 70 tonnes per day for 30 days, with the first royalty payment. All share issuances are subject to Cboe Canada approval and will be done on a prospectus-exempt basis.

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."

This acquisition follows two similar purchases, bringing Silver Crown's total royalties on the Madre Sierra project to three 1% NSRs. The company's strategy focuses on acquiring silver-linked royalties to provide investors with exposure to silver prices while mitigating operational risks. As a pure-play silver royalty company, Silver Crown aims to generate revenue from royalties without bearing the costs of mine production.

The Madre Sierra deposit is located in a prolific mining region in Peru, known for its significant silver production. Peru is one of the world's largest silver producers, and the country's favorable mining jurisdiction attracts investment. The acquisition aligns with Silver Crown's goal of building a diversified portfolio of high-quality silver royalties.

Silver Crown currently holds six silver royalties, with three generating revenue. The company's business model offers a hedge against currency devaluation and minimizes the impact of cost inflation associated with production. By focusing on royalties, the company avoids the capital-intensive nature of mine development and operations.

The transaction is expected to close on or before October 31, 2026, subject to customary conditions, including the approval of Cboe Canada and registration of the royalty on title. The company plans to restructure the royalties on the Madre Sierra project into a silver-only royalty, which would further align with its strategic focus.

This acquisition is a strategic move to strengthen Silver Crown's position in the silver market. With silver prices experiencing volatility, royalties provide a stable source of income without exposure to operational risks. The company's focus on silver is timely, as demand for silver continues to grow in industrial applications, including solar panels and electronics.

Silver Crown's management believes that the Madre Sierra royalty will become a significant silver ounce contributor, enhancing shareholder value. The company is dedicated to maximizing returns while minimizing the economic impact on mining projects.