Pure-Play Silver Royalty Company Expands with High-Quality Canadian Asset

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Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has entered into a royalty purchase agreement with EDM Resources Inc., dated August 6, 2025, to acquire a silver royalty from EDM's Scotia mine in Nova Scotia, Canada. The Scotia mine, located approximately 70 kilometres from Halifax, is a fully permitted past-producing zinc and lead operation that EDM is advancing toward production.

Under the agreement, Silver Crown will receive 90% of the net proceeds from silver ounces sold from the Scotia mine each quarter, with a minimum of 1,750 ounces per quarter (7,000 ounces annually). Payments will commence upon the start of commercial production and continue for 10 years from the declaration of commercial production.

The purchase price for the royalty is CA$500,000 in cash, payable in two installments: CA$250,000 at closing and CA$250,000 within 30 days. In addition, Silver Crown will issue 60,000 units to EDM at closing, valued at CA$10 per unit. Each unit will include one common share and one common share purchase warrant exercisable at CA$13 per share for 36 months. The transaction is expected to close in or about the second week of August 2025.

Silver Crown has also agreed to provide EDM with a CA$500,000 bonus if EDM doubles its annual silver production of 7,000 ounces over a 12-month period, based on a trailing six-month average. The bonus, at Silver Crown's discretion, may be paid in cash or units, subject to Cboe Canada stock exchange regulations and approval.

Peter Bures, chairman and chief executive officer of Silver Crown, stated in a company news release, "We engaged with EDM a number of years ago, while still private. This was one of our early-stage conceptual royalties, and we are excited to continue adding high-quality royalties to our portfolio with further exposure to Canada. Although the royalty is not expected to contribute to cash flow until 2027, we remain steadfast in our pursuit of royalties on currently operating assets, as evidenced by our pipeline, which predominantly comprises producing or near-producing royalties. Furthermore, the total capital deployment of CA$1.0 million (CA$1.5 million fully bonused) is relatively conservative compared to our total capital deployed to date of CA$9.6 million (CA$21.9 million fully bonused)."

Silver Sector Supported by Price Gains and Industrial Demand

Silver prices recorded strong momentum through July and into early August, driven by both geopolitical developments and continued industrial demand. Stockhead reported on July 31 that silver rose to nearly US$39 per ounce, a gain of 30%, reaching its highest level since September 2011. The increase was linked to greater investor interest in safe-haven assets amid escalating U.S. trade tensions, including new tariffs on imports from the European Union and Mexico. The report noted that Mexico remains the world's largest silver producer and a key supplier to the United States.

Industrial demand also contributed to the strength in prices. Stockhead highlighted silver's role in solar energy and electronics, particularly in photovoltaic solar cells, where it serves as a primary material for electrical conductivity. The outlet cited Citigroup analysts who projected silver prices could reach US$43 per ounce within 6 to 12 months. 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."

Wright described these results as "staggering" and maintained a Buy rating, assigning a 24-month target price of CA$45.67.

By August 4, FXStreet reported silver at US$37.35 per troy ounce, up 0.84% from the previous trading day and more than 29% higher since the start of the year.

The gold-to-silver ratio stood at 89.99, down from 90.80 the prior Friday. FXStreet emphasized silver's position as both a store of value and a hedge during inflationary periods, while also noting its extensive use in electronics and green technologies due to its high electrical conductivity.

On the same day, Investing.com contributor Patrick MontesDeOca observed that silver futures had recently peaked at US$39.91 before entering a price correction. At the time of writing, the metal was trading at US$36.91 and nearing a technical support range between US$36.12 and US$35.97. MontesDeOca noted that this zone corresponded with multiple technical indicators, including a Gann Time Cycle window and a Square of 9 rotation, which have historically aligned with price reversals or trend slowdowns.

On August 6, Kitco News reported that Rhona O'Connell, Head of Market Analysis for EMEA and Asia at StoneX, maintained a supportive outlook for gold and silver despite seasonal softness in exchange-traded product (ETP) and futures markets. O'Connell noted that silver prices had retreated from US$39.50 to US$36.20 between July 23 and July 30, an 8.4% drop, before rebounding to US$37.30, completing a Fibonacci 38% recovery. She said that while retail investment demand for silver remains subdued and the coin market is inactive, ETP flows have been more encouraging. Bloomberg data showed net silver ETF creations of 1,761 tonnes in the first half of 2025, with an additional 457 tonnes added since June, bringing total holdings to 24,461 tonnes. O'Connell added that silver futures saw a modest contraction in long positions alongside some short covering, with overall support holding above US$36 per ounce.

Third-Party Analysts Highlight Silver Crown's Performance and Strategy

In a July 1 research report, Couloir Capital stated that Silver Crown Royalties Inc. planned to raise up to CA$2 million through a non-brokered private placement to support additional royalty acquisitions. The proceeds were intended for cash-generating silver royalties on producing assets, as well as working capital and corporate development. Analyst Tim Wright described the company as having "increasing revenues, positive momentum, and strong institutional and corporate support," and assigned a target price of CA$32.34, noting that its current valuation did not reflect its long-term potential.

Couloir's report said Silver Crown's "disciplined capital structure and equity-light royalty acquisition model" positioned it for value creation as silver deliveries increase. As of April 30, the company had 2.8 million basic shares and 4.44 million fully diluted shares. The strategy focuses exclusively on silver byproduct royalties, secured on title and structured to align with operator success. Couloir noted that the company's current portfolio internal rates of return exceeded 20%, with minimum silver payment requirements and staged investments providing downside protection while limiting dilution and upfront capital commitments.

In a July 16 newsletter, Silver Stock Investor editor Peter Krauth identified Silver Crown as one of nine portfolio companies showing notable progress in the silver sector. Krauth reported that the company had raised CA$1.5 million through a non-brokered private placement to fund the second tranche of its royalty purchase on PPX Mining Corp.'s Igor 4 project and other growth initiatives. He wrote that Silver Crown was "executing on rapid growth and building on existing assets" and noted a 15% increase in the company's share price over the previous month, which he viewed as a sign that the market was recognizing the company's value.

Couloir Capital reiterated its positive view in an August 4 report, highlighting eight consecutive quarters of more than 30% quarter-over-quarter revenue growth. Wright described these results as "staggering" and maintained a Buy rating, assigning a 24-month target price of CA$45.67 compared with a then-current share price of CA$7.15. He noted that Silver Crown was the only publicly traded pure-play silver royalty company, describing its strategy as "a unique, diversified entry point into the silver market."

The August 4 report also reviewed recent corporate developments, including a US$1 million initial investment in a royalty on the PPX Mining Igor project in Peru and a letter of intent for a 4.5% royalty on silver production from the Bethania mine in central Peru. According to Couloir, these agreements, once finalized, would increase contracted deliveries to 100,000 ounces annually by 2026. Wright said this level of production could provide the company with significant funds to deploy into new transactions.

Couloir reported that Silver Crown had raised US$3 million in five tranches and had purchased 1,000 ounces of physical silver at US$30.15 per ounce, which had increased in value with silver prices rising above US$38. Wright said that the company's ability to raise capital was notable 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." The report concluded that Silver Crown's consistent revenue growth, low-cost acquisition model, and focus on silver royalties positioned it strongly in the royalty sector, with continued portfolio growth anticipated.

Positioning Within the Silver Royalty Sector

According to the company's third-quarter 2025 corporate presentation, Silver Crown targets royalties on byproduct or co-product silver from producing mines and processing facilities, with minimum delivery obligations registered on title. The Scotia royalty structure follows this model, providing both age-based proceeds and a fixed minimum annual delivery. 

The company's portfolio already includes silver royalties from producing assets such as the Elk Gold Mine in British Columbia, the PGDM complex in Brazil, and a facility in Ecuador. The Scotia transaction adds to Silver Crown's presence in Canada and expands its minimum silver delivery base. Management noted in the presentation that the firm applies a portfolio approach, typically allocating no more than 10% of total capital to any single project and utilizing staged payments to manage investment risk. 

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 3.02 million outstanding shares and 2.11 million free float traded shares. Its market cap is CA$22.8 million. Its 52-week trading range is CA$5.35–8.30 per share.