Silver Crown Royalties Inc. has strengthened its market presence by engaging Investor Cubed Inc. for comprehensive investor relations services and successfully closing the first tranche of a non-brokered private placement, demonstrating a strategic approach to capital expansion and investor communication.
The company has entered into a consulting agreement with Investor Cubed for investor relations and shareholder communications services. The one-year term agreement includes monthly cash compensation of C$10,000 and potential issuance of 25,000 common shares, contingent upon Cboe Canada Inc.'s approval.
In a significant financial move, Silver Crown completed its first tranche of private placement, issuing 67,538 units at C$6.50 per unit, generating gross proceeds of approximately C$439,000. Each unit comprises one common share and a warrant exercisable to acquire an additional common share at C$13.00 over three years.
The proceeds will be strategically allocated to partially fund the second tranche of a silver royalty acquisition on the Igor 4 project in Peru and cover general administrative expenses. This financial strategy underscores the company's commitment to expanding its silver royalty portfolio while maintaining operational flexibility.
As a publicly traded silver royalty company, Silver Crown currently holds four silver royalties, with three already generating revenue. The company's business model offers investors precious metals exposure with a natural hedge against currency devaluation and minimized production cost risks.
Neil Simon, CEO of Investor Cubed, emphasized the strategic potential of Silver Crown, noting the opportunity to invest in silver without the typical risks associated with silver mining companies. Peter Bures, CEO of Silver Crown Royalties, expressed confidence in leveraging Investor Cubed's expertise to enhance the company's visibility and connection with Canadian investors.
The private placement and investor relations engagement represent a calculated approach to growth, positioning Silver Crown Royalties for potential expansion and increased shareholder value in the competitive precious metals market.
