Silver Royalties Surge with Major Peru Acquisition

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Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has closed the third and final tranche of its previously announced non-brokered private placement, issuing 89,400 units at a price of CA$6.50 per unit for gross proceeds of approximately CA$581,100. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable at CA$13.00 for a period of three years.

In total, the company issued 232,248 units across the offering, raising cumulative gross proceeds of approximately CA$1,509,615. Proceeds from the final tranche will be used to partially fund the second tranche of the company's silver royalty acquisition on the Igor 4 project in Peru and for general and administrative expenses. All securities issued under the offering are subject to a statutory hold period of four months plus one day, in accordance with applicable securities regulations. The closing was subject to customary conditions, including approval by Cboe Canada Inc.

Silver Crown also confirmed within the news release that it expects to receive cash payments equivalent to approximately 6,703 ounces of silver for the first quarter of 2025. This anticipated revenue is driven by the early payment from the PPX/Igor 4 royalty as well as payments under the Elk Gold Royalty. In a company news release, Silver Crown highlighted that these proceeds represent an important early return on its growing portfolio of silver-focused royalty assets.

Silver Sector Positioned Amid Rising Market Pressures

According to a Kitco News report published April 23, Florian Grummes of Midas Touch Consulting stated that silver showed "signs of life on its own" for the first time in some time, marking a potentially significant moment for the precious metals sector. Grummes emphasized that silver was "extremely undervalued" and projected prices could reach between $40 and $50 by early summer. He also noted the gold-to-silver ratio was out of alignment with natural and production ratios, calling the current market level "basically a joke."

In a separate article from FX Empire on April 23, Christopher Lewis explained that silver markets continued to test the important US$33 resistance level, with the commodity showing resilience despite broader pressures in gold. Lewis observed that silver's dual role as both a precious and industrial metal contributed to its current momentum. He noted that the US$33 mark had been "a major resistance barrier" and pointed to significant attention from market participants around this level.

Technical Analyst Clive Maund, writing on April 26, described the silver market as a "pressure cooker" due to a significant buildup in short positions over the past six months. He explained that the ongoing gap between physical and paper prices of silver could not persist indefinitely. Maund suggested that the growing imbalance might result in a "spectacular vertical spike" if short covering accelerates, likening the situation to a pressure cooker lid eventually blowing off under continued strain. He also noted that retail participation remained low, an indicator often associated with the early stages of a major sector move.

Building Momentum Through Strategic Growth

According to Silver Crown's second-quarter 2025 investor presentation, the company has structured its royalty model to emphasize investor protections and staged capital deployment. Its portfolio currently includes royalties on three producing or near-producing assets: 1) Gold Mountain's Elk Gold Mine, 2) Pilar Gold's PGDM Complex, and 3) BacTech's bioleaching facility. Silver Crown's model features minimum delivery obligations on silver ounces, which are intended to secure a baseline cash flow independent of variable production factors.

The company reported a material increase in expected silver deliveries, projecting over 78,000 ounces annually by 2026. Management also noted that Silver Crown achieved more than 300% revenue growth over the past year, distinguishing it among nano-cap mining royalty companies. The company's approach, which includes the creation of silver-only royalties with minimum silver payments and registered title rights, seeks to capture value from byproduct silver production while minimizing upfront costs.

Silver Crown's management team, led by Founder, Chairman, and CEO Peter Bures, emphasizes strategic investments across diversified assets with a goal of maintaining an internal rate of return (IRR) greater than 15% on individual projects. With additional royalty agreements under discussion and ongoing cash flow from existing deals, Silver Crown outlined a path toward further scaling its portfolio while maintaining a disciplined investment approach.

Analyst Highlights Value Opportunity in Silver Crown's Pure Silver Focus

Couloir Capital analyst Tim Wright maintained a Buy rating on Silver Crown Royalties Inc. in a research note dated January 21. He described the company as “the only pure silver royalty play on the market” and set a price target of CA$32.34. Wright observed that Silver Crown's Enterprise Value-to-Equity Ratio stood at 1.0, compared to a peer group average of 5.7, indicating what he called significant relative value.

The report outlined several developments that supported the company's long-term growth prospects, including its July 2024 public listing and a 286% increase in revenue from the third quarter of 2023 to the fourth quarter of 2024. Wright also pointed to the acquisition of the BacTech royalty, which secured minimum annual deliveries of 35,000 ounces of silver over a ten-year period. He noted that Silver Crown's agreement with PPX Mining could generate over US$1 million in revenue in 2025, based on expected deliveries of 36,063 ounces of silver.

At the time of the report, Wright valued Silver Crown's shares at CA$6.70, suggesting a potential return of more than 470% to his target. Although the note was published before Silver Crown's April physical silver acquisition, it provided additional context for investor interest and reinforced the company's positioning as a silver-focused royalty platform amid tightening market supply and growing industrial demand.

Ownership and Share Structure

Insiders and management hold a total of 21% of the company, institutions own 16%, and private corporations have 6%, noted Wright with Couloir.

"Insider ownership by management aligns management's interests with those of shareholders, which is a desirable attribute," he added.

As for share structure, Silver Crown has 2.49M outstanding shares and 2.1M free float traded shares. Its market cap is US$10.6 million. Its 52-week trading range is CA$6.50–9.85 per share.