Silver Crown Royalties Inc. has completed the second tranche of its non-brokered private placement, issuing 75,310 units at C$6.50 per unit and generating gross proceeds of C$489,515. The financing brings the total units issued to 142,848, with cumulative gross proceeds reaching C$928,512.
The newly raised capital will be strategically deployed to partially fund the second tranche of the company's silver royalty acquisition on the Igor 4 project in Peru, as well as cover general and administrative expenses. Each unit comprises one common share and one warrant, with the warrant allowing holders to purchase an additional common share at C$13.00 over a three-year period.
This latest financing round underscores Silver Crown Royalties' ongoing efforts to expand its precious metals portfolio. The company currently holds four silver royalties, with three already generating revenue. Its business model offers investors exposure to precious metals while providing a potential hedge against currency devaluation and mitigating the impact of production cost inflation.
The investment represents a strategic approach to resource investment, allowing the company to generate returns from mining operations without direct operational risks. By focusing on royalty acquisitions, Silver Crown Royalties can diversify its portfolio and potentially provide more stable returns compared to traditional mining investments.
The units issued are subject to a standard four-month and one-day statutory hold period, in compliance with securities legislation. The transaction received approval from Cboe Canada Inc., further validating the company's financial and operational strategy.
For investors and market observers, this financing signals Silver Crown Royalties' continued commitment to growth in the precious metals sector, particularly in promising regions like Peru. The company's approach of minimizing direct operational risks while maintaining exposure to potential metal price appreciation could be an attractive strategy in the current volatile global economic landscape.
