Silver Crown Royalties Inc. has announced a C$3,000,000 strategic investment from prominent mining investor Michael Gentile through a non-brokered private placement. The investment consists of 424,500 units at $7.00 per unit, with each unit comprising one common share and one common share purchase warrant. The company simultaneously appointed Gentile as Strategic Advisor, marking a significant development for the junior mining royalty company.
Michael Gentile brings substantial credibility to Silver Crown Royalties, having established himself as a leading strategic investor and advisor in the junior mining sector. He currently serves as the largest shareholder in over 25 junior mining companies and holds board positions with several junior mining firms. In 2021, he co-founded Bastion Asset Management, a Montreal-based hedge fund now managing over C$700 million in assets. Previously, he served as Vice President and Senior Portfolio Manager at Formula Growth Ltd from 2001 to 2018, accumulating deep capital markets experience that continues to make him a sought-after figure in the mining investment community.
Peter Bures, Chief Executive Officer of Silver Crown Royalties, emphasized the strategic importance of this development. "We are humbled to have Michael Gentile join our team as a strategic investor and a strategic advisor," Bures stated. "Michael's deep industry knowledge and contacts should serve the shareholders of Silver Crown in the near-term with an expected lower cost of equity capital." The company plans to allocate the offering proceeds primarily toward specific accretive silver royalties that have been identified and are advancing, while also bolstering general working capital. This positions Silver Crown to expand its portfolio and capitalize on what Bures described as "the favorable outlook for rising silver prices."
Gentile expressed enthusiasm about his new role with Silver Crown Royalties, noting the timing coincides with silver reaching new record highs. "I see a massive value creation opportunity ahead for SCRi as they exploit an untapped market opportunity in the Silver Royalty space," Gentile commented. "Peter and the team have built a tightly held, well-structured royalty platform that is deeply undervalued and not appreciated by the market. I look forward to helping SCRi accelerate their growth initiatives and increase their market presence and awareness."
As compensation for his advisory role, Silver Crown has issued Gentile 50,000 stock options with a strike price of $8.05 for a three-year period. He will also be entitled to participate in Silver Crown's RSU program in accordance with the company's omnibus equity incentive plan. Silver Crown Royalties operates as a publicly traded silver royalty company currently holding five silver royalties, with its business model designed to offer investors exposure to precious metals while providing a natural hedge against currency devaluation and mitigating production-related cost inflation effects.
This strategic investment and advisory appointment represents a significant validation of Silver Crown Royalties' business model and growth potential. The involvement of a high-profile investor like Gentile typically signals confidence in a company's management team and strategic direction, potentially attracting additional institutional interest. For investors in the junior mining sector, this development highlights the increasing attention being paid to royalty companies as vehicles for precious metals exposure, particularly as silver prices demonstrate strength. The company's focus on expanding its royalty portfolio comes at a time when many analysts project continued demand for silver in both industrial and investment applications.
