Silver Crown Royalties Inc. announced it is monitoring the recent receivership proceedings involving Gold Mountain Mining Corp. and its subsidiaries

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Silver Crown Royalties Inc. announced it is monitoring the recent receivership proceedings involving Gold Mountain Mining Corp. and its subsidiaries, Bayshore Minerals Inc. and Elk Gold Mining Corp. The development is notable for Silver Crown as it holds a royalty agreement with Elk Gold, which remains active and is registered on title.

In a company news release, Silver Crown’s Chief Executive Officer Peter Bures stated, “Silver Crown's prudent approach to royalty agreements and diversification was designed to offer a buffer against these types of events. This strategy will allow us to maintain our forward momentum in terms of additional growth in revenues.” The company noted that it would continue to update shareholders and the market as material developments occur.

Silver Crown holds a 90% silver net smelter return (NSR) royalty on the producing Elk Gold Mine, with a minimum obligation equivalent to 6,000 ounces of silver per year. According to company filings, the total life-of-mine expected delivery from Elk Gold exceeds 600,000 ounces, with bonus payments available for additional ounces delivered annually or for increased in-situ mineral resources. The original royalty agreement involved a C$2.5 million up-front payment and allows for annual bonus payments of C$500,000 per 2,000 additional ounces delivered, up to a maximum of 20,000 ounces per year.

Silver Sector Strengthened by Price Gains and Industrial Demand

Silver prices showed significant momentum in July and early August, supported by both geopolitical developments and rising industrial demand. According to a July 31 article from Stockhead, silver climbed to nearly US$39 per ounce, marking a 30% increase and reaching its highest level since September 2011. The rise was attributed to heightened investor interest in safe-haven assets amid escalating U.S. trade tensions, including new tariffs on imports from the European Union and Mexico. The article noted that Mexico remained the largest producer of silver and a key supplier to the United States.

In addition to geopolitical factors, industrial uses also played a role in boosting silver demand. As Stockhead reported, silver is widely used in solar energy and electronics, particularly in photovoltaic (PV) solar cells where it serves as a key material for electrical conductivity. Citigroup analysts were cited as saying silver prices could reach US$43 per ounce within the next 6 to 12 months, while a company executive interviewed by Stockhead commented, “With a combined industrial demand and continued gold:silver ratio of about 90 the only logical result is that prices will rise.”

On August 4, FXStreet reported that silver was trading at US$37.35 per troy ounce, a 0.84% increase from the prior trading day. Since the start of the year, the metal had gained more than 29%. The gold-to-silver ratio stood at 89.99, down from 90.80 on the preceding Friday. FXStreet emphasized silver’s status as a store of value and a hedge during inflationary periods, while also highlighting its extensive use in electronics and green technologies. The report stated that silver’s high electrical conductivity made it “widely used in industry, particularly in sectors such as electronics or solar energy.”

Also on August 4, Investing.com contributor Patrick MontesDeOca noted that silver futures had recently peaked at US$39.91 before entering a price correction. At the time of publication, the metal was trading at US$36.91 and approaching a key technical support zone between US$36.12 and US$35.97. MontesDeOca pointed out that this range aligned with multiple technical indicators, including a Gann Time Cycle window and a Square of 9 rotation, which historically signaled price reversals or trend exhaustion.

Third-Party Expert Analysis Highlights Silver Crown’s Strong Performance and Strategic Positioning

Couloir Capital issued a research report on July 1 indicating that Silver Crown Royalties Inc. planned to raise up to CA$2 million through a nonbrokered private placement to fund additional royalty acquisitions. The firm stated that proceeds would be used to pursue cash-generating silver royalties on producing assets, as well as for working capital and corporate development. Couloir described Silver Crown as having “increasing revenues, positive momentum, and strong institutional and corporate support.” Analyst Tim Wright assigned the company a target price of CA$32.34, stating that its current valuation did not reflect its long-term potential.

According to Couloir, Silver Crown’s “disciplined capital structure and equity-light royalty acquisition model create an attractive setup for value creation as silver deliveries ramp up.” The company maintained a tight share structure, with 2.8 million basic shares and 4.44 million fully diluted shares as of April 30. Its strategy focused exclusively on silver byproduct royalties, secured on title and structured to align with operator success. Couloir reported that the company's current portfolio internal rates of return exceeded 20% and emphasized that “minimum silver payments and staged investments” provided downside protection while limiting dilution and upfront capital requirements.

In a July 16 newsletter update, Silver Stock Investor editor Peter Krauth highlighted Silver Crown Royalties Inc. as one of nine portfolio companies posting notable progress in the silver sector. According to Krauth, Silver Crown “raised a total of $1.5M through a non-brokered private placement.” The funds were earmarked to support the second tranche of the company’s royalty purchase on PPX Mining Corp.’s Igor 4 project, as well as other growth initiatives.

Krauth stated that “Silver Crown is executing on rapid growth and building on existing assets,” and noted that the company's stock had risen 15 percent over the previous month. He interpreted the share price increase as an indication that “the market appears to finally be realizing SCRI’s inherent value.” Krauth concluded his update by characterizing Silver Crown as “attractive to add on weakness,” reflecting confidence in the company’s strategy and market positioning despite broader silver sector volatility.

In a follow-up report dated August 4, Couloir Capital reiterated its positive view, highlighting eight consecutive quarters of more than 30% quarter-over-quarter revenue growth. Analyst Tim Wright described the results as “staggering” and maintained a Buy rating. The firm assigned a 24-month target price of CA$45.67, representing a 539% increase over the then-current share price of CA$7.15. Wright noted that Silver Crown was the only publicly traded pure-play silver royalty company and that its strategy offered “a unique, diversified entry point into the silver market.”

Wright also reviewed recent corporate developments, including the company’s US$1 million initial investment in a royalty on the PPX Mining Igor project in Peru and its letter of intent for a 4.5% royalty on silver produced from the Bethania mine in central Peru. These agreements, once finalized, were expected to increase contracted deliveries to 100,000 ounces per year by 2026. “That amount of silver ounces would provide Silver Crown with significant funds to deploy into new deals,” Wright stated, citing the potential to grow organically while reducing reliance on equity financings.

The report also detailed that Silver Crown had raised US$3 million in five tranches and used part of its capital to purchase 1,000 ounces of physical silver at US$30.15 per ounce. Wright noted that the silver price had since risen above US$38, increasing the value of the company's holdings. He added that Silver Crown's capital-raising success stood out in a challenging funding environment, writing, “In an environment where many smaller firms in the sector struggle to attract capital, SCRI continues to raise the fresh capital needed to pursue its accretive growth strategy.”

Couloir emphasized Silver Crown’s consistent revenue growth, low-cost acquisition model, and focused strategy. The firm concluded that the company was well positioned in the royalty space, with Wright stating, “We can expect dealmaking to continue and the royalty portfolio to grow.”

Operational Resilience and Royalty Strategy

Silver Crown’s broader strategy emphasizes diversification and protections within its royalty agreements. As noted in its third-quarter 2025 investor presentation, the company structures royalties to include minimum delivery obligations, staged investment deployment, and registration on title, aiming to reduce downside risk from operational interruptions or counterpart distress. The Elk Gold royalty comprises one of three current royalty agreements that together provide minimum silver equivalent deliveries of 22,000 ounces annually.

Despite the Elk-related proceedings, Silver Crown continues to generate revenue from its portfolio. As of July 2025, the company reported more than tripling its revenue over the previous year and increasing its minimum silver payments significantly. The company also holds royalties on Pilar Gold’s PGDM complex and on a silver recovery facility in Ecuador.

Silver Crown stated it will continue to evaluate developments at Elk Gold Mining Corp. while remaining focused on its long-term strategy of securing royalties with built-in investor protections and minimum output thresholds.

Ownership and Share Structure

Insiders and management, including their friends and family, hold a total of 29% of the company. Institutions own 15%, and private corporations have 9%, the company said in its investor presentation.

As for share structure, Silver Crown has 2.76 million outstanding shares and 2.11 million free float traded shares. Its market cap is US$16.84 million. Its 52-week trading range is CA$5.35–9.85 per share.