Royalty Firm Announces CA$5M Financing for Silver Growth in Peru

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Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has announced that its previously disclosed private placement will now proceed as a brokered offering. The company has entered into an agreement with Centurion One Capital Corp., which will act as lead agent and sole bookrunner, to raise up to CA$2 million through the sale of up to 363,636 units at CA$5.50 per unit.

Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase an additional share at CA$8.25 for a period of 36 months from the closing date. The warrants will be subject to an acceleration clause if the company's share price exceeds a volume-weighted average of CA$11.00 for 30 consecutive trading days, in which case the warrants may expire 30 days after notice of acceleration is provided.

The company has also granted Centurion One Capital an option to sell up to an additional 54,545 units on the same terms, which could increase gross proceeds by CA$300,000. The proceeds are intended to support the final tranches of two existing silver royalty agreements and to provide general working capital.

Insiders from both the company and the lead agent are expected to acquire up to approximately 25% of the offered units. This participation qualifies as a related party transaction under Multilateral Instrument 61-101, although the company expects it to be exempt from formal valuation and minority shareholder approval requirements due to the scale of participation relative to its market capitalization.

The offering is expected to close on or around September 26, 2025, subject to regulatory and exchange approvals. The units will be offered under the listed issuer financing exemption in select Canadian provinces and in other jurisdictions pursuant to applicable exemptions. An amended offering document is available on SEDAR+ and the company's website.

Rising Demand and Tight Supply Reinforce Silver's Strategic Value

A September 8 report from VBL noted that silver's growing importance in trade and industrial strategy was underscored by its absence from Executive Order 232, which exempted gold from potential tariffs but not silver. This omission led to market speculation that silver could remain subject to duties, contributing to a sharp rise in short-term lease rates above 5% in London and a premium of approximately 70 cents for Comex futures over spot prices. According to Bob Coleman of Idaho Vaults, "Borrowing fee to short SLV ETF beginning to rise. Lease rates in London are at 5%. Price has been the relief valve in the past." These trends pointed to strong underlying demand and tightening near-term supply conditions.

On September 9, The Silver Academy described silver as "the critical lubricant of the modern economy," highlighting its essential roles in solar panels, electric vehicles, semiconductors, and defense technologies. The report noted that the global silver market had entered its sixth consecutive year of structural deficit, with physical supply falling behind growing industrial demand.

Peter Krauth of the  Silver Stock Investor newsletter described the stock as "a patience trade that is likely to pay off well with much less overall risk than junior explorers."

Despite historical underinvestment, the report pointed to new momentum: "Sovereign demand is expanding," and recent actions by Russia and Saudi Arabia signaled a growing recognition of silver's strategic utility. Mexico's regulatory shift away from new mining concessions was described as a turning point, reinforcing the value of existing silver supply channels and accelerating the sector's focus on resource efficiency and innovation.

A September 11 analysis by Dominic Frisby emphasized silver's unique industrial profile and market dynamics, calling it "a beautiful, captivating, magical metal with a plethora of uses." He pointed out that silver prices had climbed to US$41, supported by a 45% reduction in short positions since July and increased interest from investors and institutions. The metal's essential role in electronics and clean energy applications has continued to grow, while above-ground stockpiles have declined.

Frisby concluded that the structural tightness and consistent demand growth reflected a clear long-term trend: "Demand for silver will only increase as we make more mobile phones, computers, batteries, medical devices, and solar panels."

Analysts Highlight Silver Crown's Revenue Growth and Strategic Focus

A July 1 research report from Couloir Capital reviewed the company's plan to raise up to CA$2 million through a non-brokered private placement. The proceeds were allocated toward acquiring cash-flowing silver royalties, along with general working capital and corporate development. Analyst Tim Wright stated that Silver Crown was showing "increasing revenues, positive momentum, and strong institutional and corporate support," and assigned a 12-month target price of CA$32.34 based on a valuation he viewed as undervaluing the company's long-term potential.

The report emphasized Silver Crown's equity-light approach to royalty acquisition, noting that its model relies on staged investment tranches linked to project-level milestones. Couloir highlighted that the company's portfolio included royalty agreements with internal rates of return above 20%, supported by minimum silver delivery requirements intended to reduce dilution risk and provide downside protection.

Couloir Capital reiterated its positive view in an August 4 update, highlighting eight consecutive quarters of revenue growth above 30% on a quarter-over-quarter basis. Wright described the financial performance as "staggering" and maintained a Buy rating while raising the firm's 24-month price target to CA$45.67. At the time of the report, Silver Crown's share price stood at CA$7.15. Wright also remarked that Silver Crown remained the only publicly traded company focused exclusively on silver royalties, calling its business model "a unique, diversified entry point into the silver market."

The August update also reviewed recent corporate developments, including a CA$1 million investment in a royalty on PPX Mining's Igor project and a letter of intent for a 4.5% royalty on silver production from the Bethania mine, both in Peru. Couloir reported that once completed, these transactions would increase Silver Crown's contracted silver deliveries to 100,000 ounces annually by 2026.

In addition, the report noted that the company had raised CA$3 million through five separate financing tranches and had acquired 1,000 ounces of physical silver at CA$30.15 per ounce. With spot silver trading above US$38, that position had appreciated in value.

Wright commented, "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 performance, efficient royalty acquisition structure, and dedicated silver focus placed it among the most distinctive companies in the royalty space.

Silver Crown was also featured in the July 16 edition of the Silver Stock Investor newsletter. Editor Peter Krauth included the company in a list of nine portfolio holdings showing significant progress, citing the successful closing of a CA$1.5 million non-brokered financing. The funds were used to complete the second tranche of the company's royalty interest in the PPX Mining Igor 4 project in Peru. Krauth wrote that Silver Crown was "executing on rapid growth and building on existing assets," and noted a 15% increase in share price over the prior month as a sign of growing investor interest.

On September 3, Peter Krauth again highlighted Silver Crown Royalties Inc. in his market commentary Is Silver Headed Higher Still?, noting the company's newly announced non-brokered private placement of up to CA$5 million . The financing will consist of up to 769,230 units priced at CA$6.50 each, with every unit including one common share and one warrant. Each warrant allows the purchase of an additional share at CA$13.00 within three years of the closing date.

CEO Peter Bures indicated that the company had identified several cash-flowing silver royalty opportunities and was aiming to remain positioned to act quickly. According to Krauth, the financing provides Silver Crown with flexibility to pursue these projects. The offering is being conducted under the listed issuer financing exemption (LIFE), which enables broader investor participation.

Krauth noted that if fully subscribed, the financing would result in approximately 25% dilution, though he emphasized that the capital could be used to add accretive royalties. He cited Bures's view that such a deployment would offset dilution and benefit long-term shareholders. At the time of writing, SCRi shares were trading about 11% below their recent high of CA$7.64. Krauth described the stock as "a patience trade that is likely to pay off well with much less overall risk than junior explorers."

Silver Crown Catalysts: Supporting the Royalty Growth Strategy

Silver Crown Royalties has consistently emphasized a disciplined and structured approach to royalty development, with a focus on silver-only agreements that include safeguards such as minimum delivery obligations and staged investments. As outlined in its investor presentation, the company has allocated capital to a growing portfolio that includes the PPX and EDM silver royalties, both of which are expected to benefit from the proceeds of the current offering.

The company recently reported that annual minimum silver equivalent deliveries had increased to 22,000 ounces, up from 10,000 ounces the prior year, reflecting expanded commitments across its royalty agreements. These developments contributed to a more than 300% increase in revenue over 2023 and positioned Silver Crown as one of the fastest-growing nano-cap royalty firms in the sector.

With a market capitalization of approximately CA$21.5 million as of July 2025 and a shareholder base comprising retail, institutional, and management ownership, Silver Crown continues to pursue new royalty agreements with internal rates of return above 20%. The company's model emphasizes risk management, value crystallization, and a portfolio approach that limits exposure to any single project.

The offering was positioned to support the development of Silver Crown's growing portfolio of silver-focused royalty interests and to reinforce its existing strategy within the precious metals royalty sector. 

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–CA$8.30 per share.