Major Investor Boosts Stake as Silver Royalty Firm Closes CA$4.5M Financing at Premium

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) announced the closing of a previously announced CA$4,500,000 non-brokered private placement of common shares. Under the offering, two investors subscribed for an aggregate of 321,429 common shares at a price of CA$14.00 per share, including Michael Gentile, who subscribed for 219,150 common shares.

The company stated that no finder's fees or other consideration were payable in connection with the offering. Following completion, Silver Crown reported 5,366,550 issued and outstanding common shares. The company also reported a cash position of approximately CA$14.2 million, inclusive of the current market value of 15,000 ounces of silver bullion.

Peter Bures, Chief Executive Officer, said in a company news release, "we're very pleased with the premium-to-market financing that saw Mr. Gentile increase his partially diluted interest in Silver Crown to just under 20%." He added that this represented "a very strong vote of confidence in our Company by a leading investor in the mineral resource sector."

As part of the transaction, Gentile filed an Early Warning Report in accordance with National Instrument 62-103. Prior to the offering, Gentile held 437,500 common shares, 424,500 warrants, and 50,000 stock options, representing approximately 9.89% of the issued and outstanding common shares on an undiluted basis and 16.52% on a partially diluted basis. Following the offering, Gentile held 656,650 common shares, 424,500 warrants, and 50,000 stock options, representing approximately 12.15% on an undiluted basis and 19.36% on a partially diluted basis. The company stated that the common shares were acquired for investment purposes.

Silver Crown indicated that proceeds from the offering will be allocated primarily toward specific accretive silver royalties the company has identified. The common shares issued are subject to a statutory hold period of four months plus one day from the date of issuance.

Third-Parties Cite Price Breakout, Target Achievements, and Expanding Royalty Portfolio

In a January 14 report, John Newell of John Newell & Associates maintained a "Speculative Buy" rating on the company, noting that "since the original article ... was published in late December, the company has moved decisively higher." He stated that "what was previously a constructive base has now resolved into a strong upside breakout, validating both the technical setup and the underlying silver royalty thesis."

Newell also reported that the stock "has successfully reached all three previously identified upside targets," listing them as "first target: CA$7.75 met," "second target: CA$9.00 met," and "third target: CA$10.25 met." He added that "the move has been accompanied by strong volume expansion," and wrote that "price has pushed well above former resistance, which now shifts into a potential support zone."

He further stated that "with the intermediate targets achieved, focus now shifts to the big picture objective at CA$12.50 [met]," which he said aligns "with longer-term resistance and valuation expansion implied by improving silver fundamentals and portfolio growth." In the same report, he wrote that "the combination of price confirmation and governance enhancement materially improves the overall risk-reward profile."

In an April 8 report, Peter Krauth discussed the company's financial and operational performance, stating that "Silver Crown delivered a strong and transformative 2025, marked by impressive revenue growth and a rapidly expanding silver royalty portfolio." He noted that the company reported "record revenue of CA$1.23 million, driven by higher minimum silver deliveries of 22,281 ounces," describing this as "standout growth of 53% year-over-year in deliveries and 112% in revenue."

Krauth also addressed developments across the company's assets, stating that it "expanded its portfolio with key acquisitions," including a royalty on the Igor 4 Project in Peru and exposure to the Scotia Mine in Nova Scotia. He added that "the PGDM Complex in Brazil faced temporary setbacks," while "the Elk Gold Mine experienced a pause in operations following a change in ownership," and that "progress at the BacTech Environmental (OTCMKTS: BCCEF) bioleaching facility in Ecuador has been slower than expected."

In the same April 8 report, Peter Bures, Chief Executive Officer, stated, "2025 was a formative year for your company. We structured and acquired multiple royalties (specifically PPX Mining Corp. (PPX:TSXV;  PPX:BVL)  and EDM Resources  (EDM:TSXV;SWNLF:OTCMKTS)), positioning us for aggressive revenue growth in 2026." He added that "with over CA$7 million in cash and silver bullion on our balance sheet, we can add additional royalties without further dilution," and noted that "our pipeline remains robust and we continue to advance a number of royalty opportunities."

Operational Developments and Royalty Structures

According to the company's investor presentation, Silver Crown's royalty structures include multiple arrangements tied to specific projects and delivery profiles. For the PPX Igor Mine, the company outlined a US$2.5 million up-front cash payment for a 15% silver NSR royalty on a producing mine, with total life-of-mine expected delivery to exceed 200,000 ounces and a bonus payment of US$2.5 million tied to a doubling of ounces deliverable.

For the Pilar Gold PGDM operation, the company described a US$2.0 million up-front cash payment for a 90% silver NSR royalty, with total life-of-mine expected delivery exceeding 300,000 ounces. The structure includes minimum deliveries equivalent to 16,000 annual ounces and a bonus payment of US$1,500,000 in equity tied to an increase in deliveries to 32,000 ounces per annum.

In the BacTech project, the company outlined a CA$1.0 million up-front equity payment for a 90% silver NSR royalty on a facility in Ecuador. The arrangement includes total life-of-mine expected delivery exceeding 350,000 ounces, minimum deliveries equivalent to 35,000 annual ounces, and a CA$3.0 million equity bonus payment tied to advancing the project through to production. 

The investor presentation also indicated that the company's pipeline includes more than 10 active discussions at any given time and that it has averaged two royalties per year. Additionally, the portfolio includes multiple projects at various stages, including operating, restart, and pre-development phases, with a combined pipeline IRR listed at greater than 25%.