Silver Crown Royalties Completes Third NSR Acquisition

Silver Crown Royalties Inc has completed its third acquisition of a 1% net smelter return (NSR) royalty on the Madre Sierra deposit in Jauja, Peru. The acquisition, made from privately held Titiminas Silver Inc, brings the company closer to its goal of diversifying its royalty portfolio.

According to the terms of the agreement, Silver Crown paid $2 million in cash at closing and issued 38,401 units, each comprising one common share and one-half of one common share purchase warrant. The warrants are exercisable at 150% of the closing issue price, which was determined based on the volume-weighted average trading price of Silver Crown's common shares on Cboe Canada for the five trading days preceding the definitive royalty purchase and sale agreement. The warrants will be exercisable for a period of 24 months following the closing.

In addition to the initial payment, Silver Crown has the potential to pay up to $1 million in contingent consideration. This contingent payment would be satisfied through the issuance of additional units, with each unit structured similarly to the initial issuance. The contingent consideration would be triggered if Silver Crown receives its first royalty payment following at least 30 days of continuous production at the Madre Sierra deposit at a rate of at least 70 tonnes per day. The units issued for the contingent consideration would be priced at the volume-weighted average trading price of Silver Crown's common shares immediately preceding the trigger date, with the warrants exercisable at 150% of that price for a period of 24 months following the trigger date.

The acquisition is part of Silver Crown's strategy to expand its royalty portfolio and diversify its revenue streams. The company currently holds eight silver royalties and is dedicated to generating free cash flow. Silver Crown's business model offers investors exposure to precious metals, providing a natural hedge against currency devaluation while mitigating the adverse effects of production-related cost inflation.

Silver Crown's Chairman and CEO, Peter Bures, commented, "This acquisition further solidifies our position in the silver royalty market and aligns with our strategy to grow our portfolio. We are pleased to continue our partnership with Titiminas Silver Inc and look forward to the potential for increased royalty payments as production at the Madre Sierra deposit ramps up."

The acquisition was completed on September 16, 2026, and all securities issued in connection with the transaction were issued on a prospectus-exempt basis, subject to applicable statutory hold periods and resale restrictions. The registration of the assignment of the royalty to Silver Crown is expected to follow in the ordinary course.