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TORONTO, ON TheNewswire - FEBRUARY 6, 2025 Silver Crown Royalties Inc. ( "Silver Crown" "SCRi" or the "Corporation" or the "Company" ) is pleased to announce the closing of the first tranche of (" First Tranche ") of its previously announced royalty with PPX Mining Corp. (" PPX ") for up to 15% of the cash equivalent of silver produced from the Igor 4 project in Peru, and the concurrent launch of a non-brokered private placement offering of units.
In connection with closing of the First Tranche, SCRi paid US$1,000,000 in cash to PPX in exchange for a royalty equal to 6% of the cash equivalent of the silver produced from the Igor 4 project in Peru (" Igor 4 "). The second tranche of US$1,470,000 in cash (the " Second Tranche ") is due within six months of the date hereof and increases the royalty to 15%. Minimum payment obligations of the cash equivalent of 14,062.5 ounces of silver per quarter begin no later than October 1, 2025 and continue until a total amount of 225,000 silver ounces has been paid.
Silver Crown also announces the launch of a non-brokered private placement of up to 400,000 units of the Company (" Units ") at a price of C$7.50 per Unit (the " Issue Price ") for gross proceeds of up to C$3,000,000 (the " Offering "). The Company reserves the right to increase the size of the Offering, subject to the approval of the Cboe Canada Exchange (" Cboe "). Each Unit will consist of one common share of the Company (a " Common Share ") and one common share purchase warrant (" Warrant "). Each Warrant shall be exercisable to acquire one (1) additional Common Share at an exercise price of C$16.00 for a period of three years from the date of the closing of the Offering (the " Expiry Date ").
Proceeds of the Offering will be used to fund the Second Tranche as well as a general and administrative expenses of SCRi. All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. Closing of the Offering will be subject to customary conditions precedent, including the prior approval of Cboe.
Peter Bures, Silver Crown's Chief Executive Officer commented, "The tranche 1 closing of the PPX royalty marks our third successful transaction since we went public six months ago. We are growing our footprint in top-tear jurisdictions and targeting positive free cash flow later this year and as such, our reliance on capital markets as a going concern should be greatly diminished."
Silver Crown also announces that due to winter conditions limiting operations at the Elk Gold Mine in Q42024, it has entered into a letter agreement allowing for Elk Gold Mining Corp.'s payment of the Q42024 minimum royalty payment of C$59,144.66 (plus applicable accrued interest) originally due on January 30, 2025 in two equal instalments on February 28, 2025 and March 31, 2025. It also confirms that the restart of commercial production at the PGDM Complex has not yet occurred, and it has not received its minimum royalty payment due from Pilar de Goiás Desenvolvimento Mineral Ltda. for Q42024.
ABOUT Silver Crown Royalties INC.
Founded by industry veterans, SCRi is a publicly traded, silver royalty company. SCRi currently has four silver royalties of which three are revenue-generating. Its business model presents investors with precious metals exposure allowing for a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. SCRi endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders.
For further information, please contact:
Peter Bures
Chairman and CEO
Telephone: (416) 481-1744
Email: pbures@silvercrownroyalties.com
FORWARD-LOOKING STATEMENTS
This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include but are not limited to statements with respect to SCRi's ability to achieve its strategic objectives in the future and its ability to target additional operational silver-producing projects. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi's ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi's business, operations and financial condition, loss of key employees. SCRi has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available.
This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
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