Royalty Firm Secures High-Yield Silver Deal in Peru

Source: Streetwise Reports 06/20/2025

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has signed a US$5M deal for a 4.5% silver royalty on the Bethania Mine in Peru. Read more on how this could boost annual output by 50% below.

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has signed a Letter of Intent (LOI) with Kuya Silver Corp. to acquire a 4.5% silver royalty from the Bethania Silver Mine in Huancavelica, Central Peru. The mine, which resumed operations in May 2024, includes both the Bethania Mine and the nearby Carmelitas property. Silver Crown will acquire the royalty for a total consideration of US$5 million — comprised of US$3 million in cash and US$2 million in Silver Crown units priced at C$6.50 per unit. Each unit includes one common share and half a warrant exercisable at C$13.00 per share for three years.

Under the agreement, the company will receive escalating quarterly silver deliveries: 4,500 ounces per quarter in the first year, 9,000 ounces in the second year, and 12,375 ounces per quarter from years three through ten. After reaching a total of 475,000 ounces, the royalty rate will drop to 1% for the remaining life of the mine. Silver Crown CEO Peter Bures stated in the announcement that this deal “can potentially translate to a materially impactful increase to SCRi’s silver revenue profile paving a way from 78,000 to over 128,000 annual silver ounces.”

Bethania previously operated until 2016 and is accessible year-round by road. The project’s reactivation reflects a growing trend of revitalizing past-producing assets to capture new market value. The announcement follows a series of recent deals by Silver Crown, which has actively expanded its silver-focused royalty portfolio across the Americas.

Silver Sector Gains Momentum as Prices Climb and M&A Accelerates

Silver has emerged as a standout in the precious metals market, with rising prices, increased investor interest, and a wave of mergers and acquisitions contributing to renewed momentum across the sector. In a June 17 commentary, Stewart Thomson observed that while silver had remained relatively quiet in recent days, it continued to post new highs even as gold stalled. He noted that silver looked “set to begin significant outperformance against the stock market,” and pointed to encouraging activity among junior silver miners on the TSX Venture Exchange.

That same day, a report from Stockhead highlighted a bullish trend in silver, driven by growing industrial demand and heightened deal activity. According to the article, silver had climbed to a high of US$37.17 per ounce, up from US$33 earlier in the month and well above the US$29 level at the beginning of the year. Analysts cited strong demand from sectors such as solar energy and artificial intelligence as key factors behind the price surge, with expectations for further consolidation in the sector — particularly among companies with pure silver exposure and sensitivity to price movements.

An update from Market Pulse on June 18 echoed those trends, reporting a 3.5% gain in silver over a two-day span, reaching an intraday high of US$37.26. The report described the shift as part of a broader “rotation out of gold into previously lagging precious metals, like silver.” A technical analysis identified a breakout from a symmetrical triangle pattern earlier in the month, pushing silver to its highest level in over a decade. The analysis further noted that silver was outperforming gold, with the silver-to-gold ratio pointing toward continued strength in silver’s relative performance, at least in the near term.

Analyst Endorses Growth Potential Following Peru Deal

In a June 19, Peter Krauth highlighted Silver Crown Royalties Inc. as a company positioned for substantial growth following its announcement of a Letter of Intent with Kuya Silver for a 4.5% royalty on silver production from the Bethania Silver Mine in Peru. Krauth emphasized the structure of the transaction, which involves US$3 million in cash and US$2 million in equity units priced at C$6.50 per unit. According to Krauth, “this will dramatically boost growth for the royalty company,” estimating a 60 percent increase in annual silver deliveries, from 78,000 to over 128,000 ounces, based on the new royalty’s structured delivery schedule. He added, “I view Silver Crown as a buy at current levels,” noting that the company’s shares had risen 3 percent on the announcement despite being down approximately 12 percent year-to-date.

In additional commentary tied to the June 19 announcement, a summary of company highlights reinforced the view that Silver Crown’s first-mover approach in silver-only royalties presents a unique investment case. The company’s agreements include minimum silver delivery obligations and are secured on title, providing downside protection while aligning with operator success. The report noted that Silver Crown is on track to grow its silver deliveries from 4,341 ounces in 2022 to over 78,000 ounces by 2026, backed by three closed royalties, two binding agreements, and over ten ongoing negotiations.

The same summary pointed to Silver Crown’s capital efficiency and share structure as notable strengths. With just 2.8 million shares outstanding and a market capitalization of approximately C$18 million, the company was described as offering “significant torque to growth.” The report also highlighted the leadership of CEO Peter Bures and the experienced management and advisory team as critical assets in executing the firm’s growth strategy.

In terms of valuation, Couloir Capital initiated coverage with a positive outlook, citing relative valuation metrics, increasing revenues, and strong institutional and corporate support. Analyst Tim Wright, MSc, CFA, assigned a price target of US$32.34, attributing the valuation to “fundamental metrics” that include a high-return portfolio and scalable royalty model. According to the firm, Silver Crown’s internal rate of return on its current portfolio exceeds 20 percent, with risk mitigation embedded through staged investments and minimum delivery obligations.

Clear Targets and Capital Discipline Fuel Growth Path

Silver Crown’s strategy centers on acquiring silver-only royalties with protective structuring, including minimum delivery obligations and staged investments tied to operational performance. According to the company’s Q2 2025 investor presentation, this structure allows Silver Crown to extract value from silver byproduct streams while minimizing economic impact to operators. The Bethania royalty aligns with this model by offering tiered delivery volumes and a long-term optionality with a 1% tail royalty.

The company has rapidly grown its annual silver equivalent deliveries, from 4,341 ounces in 2022 to 78,250 ounces projected for 2025, placing it among the fastest-growing nano-cap royalty firms in the metals sector. Silver Crown forecasts delivery growth to 128,000 ounces per year in 2026, supported by a pipeline that includes two binding agreements and over ten active discussions. [OWNERSHIP_CHART-10873]

In terms of capital structure, Silver Crown reported 2.8 million shares outstanding as of April 30, 2025, with an implied market capitalization of C$17.9 million. Management and insiders held 20% of the shares, signaling aligned interests as the company advances its portfolio of royalties from producing and near-producing assets.

This latest LOI with Kuya Silver demonstrates Silver Crown’s ongoing execution of its focused royalty strategy and its ability to leverage capital deployment into scalable revenue streams.

Ownership and Share Structure

Insiders and management, including their friends and family, hold a total of 29% of the company. Institutions own 15%, and private corporations have 9%, the company said in its investor presentation.

As for share structure, Silver Crown has 2.76 million outstanding shares and 2.11 million free float traded shares. Its market cap is US$16.84 million. Its 52-week trading range is CA$5.35–9.85 per share.

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Important Disclosures:

1. Silver Crown Royalties Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver Crown Royalties Inc.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: SCRI:CBOE; SLCRF:OTCQX; QS0:FSE, )

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