The Scotia Mine is a fully permitted, past-producing zinc and lead operation in Nova Scotia, Canada, located ~70 km from Halifax (the " Project' ). EDM is currently advancing the Project towards production.
Under the terms of the Royalty, Silver Crown will receive 90% of the net proceeds from silver ounces sold from the Scotia Mine each quarter, but no less than 1,750 oz (7,000 oz annually) (the " Minimum Delivery Obligation "), commencing upon the start of commercial production and continuing for a period of 10 years commencing on the date of declaration of Commercial Production at the Scotia Mine.
The total purchase price for the royalty is C$500,000 in cash, with C$250,000 due at closing and the remaining C$250,000 payable 30 days later. Additionally, SCRi will issue 60,000 units (each, a " Unit ") to EDM at closing, valued at C$10.00 per Unit, with each unit comprising one common share and one common share purchase warrant exercisable at C$13.00 per common share for 36 months. The transaction is anticipated to close in or about the second week of August 2025.
Additionally, SCRi will provide EDM with a C$500,000 bonus if EDM doubles its silver production of 7,000 ounces sold over a 12-month period, (based on the trailing six-month average). This performance-based incentive, at Silver Crown's discretion, may be paid in cash or in Units, subject to the Cboe Canada stock exchange (" Cboe ") regulations and Cboe's approval.
Peter Bures, Silver Crown's Chairman and Chief Executive Officer, commented, "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 C$1.0 million (C$1.5 million fully bonused) is relatively conservative compared to our total capital deployed to date of C$9.6 million (C$21.9 million fully bonused)."
ABOUT Silver Crown Royalties INC.
Founded by seasoned industry professionals, Silver Crown Royalties ( Cboe: SCRI | OTCQX: SLCRF | FRA: QS0) is a publicly traded silver royalty company dedicated to generating free cash flow. Silver Crown (SCRi) currently holds five silver royalties. Its 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. SCRi strives to minimize the economic burden on mining projects while simultaneously maximizing shareholder returns. For further information, please contact:
Silver Crown Royalties Inc.
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, life of mine, cost and margins of the Project, the ability of SCRi to add high-quality royalties to its portfolio, potential cash flows from the Royalty, EDM's performance incentives, and SCRi's ability to minimize the economic impact on mining projects while maximizing returns for shareholders. 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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