Silver Crown Royalties Inc. (Cboe:SCRI,OTCQX:SLCRF,FRA:QS0) announced a C$3,000,000 strategic investment through a non-brokered private placement by investor Michael Gentile, who will also join the company as Strategic Advisor. The offering consists of 424,500 units at $7.00 per unit, with each unit comprising a common share and one common share purchase warrant. Michael Gentile, CFA, is a prominent strategic investor and advisor in the junior mining sector with extensive capital markets experience. He is currently the largest shareholder in over 25 junior mining companies and serves on several boards while acting as a strategic advisor. In 2021, Gentile co-founded Bastion Asset Management, a Montreal-based hedge fund now managing over C$700 million in assets, and previously served as Vice President and Senior Portfolio Manager at Formula Growth Ltd from 2001 to 2018.
Peter Bures, Chief Executive Officer of Silver Crown, stated that Gentile's industry knowledge and contacts should benefit shareholders through an expected lower cost of equity capital. "The proceeds from the Offering will be allocated primarily toward specific accretive silver royalties, which we have identified and are advancing, and to bolstering general working capital, positioning Silver Crown to expand its portfolio and capitalize on the favorable outlook for rising silver prices," Bures explained. This strategic move is significant as it provides Silver Crown with both capital and expertise to accelerate growth in a sector where silver prices have been reaching new highs, creating what Gentile describes as a "massive value creation opportunity."
Michael Gentile expressed enthusiasm about joining Silver Crown Royalties as a cornerstone shareholder and strategic advisor. "With Silver making 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 said. "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." The investment matters because it signals confidence from a seasoned mining investor in Silver Crown's business model at a time when precious metals are gaining attention as hedges against economic uncertainty.
As compensation for his advisory role, Silver Crown issued Gentile 50,000 stock options with a strike price of $8.05 for three years. He will also be entitled to participate in Silver Crown's RSU program according to the company's omnibus equity incentive plan. Silver Crown Royalties is a publicly traded silver royalty company that currently holds five silver royalties and aims to generate free cash flow while offering investors exposure to precious metals as a hedge against currency devaluation. The implications of this announcement extend beyond the immediate capital infusion, as Gentile's involvement could enhance Silver Crown's credibility and access to future opportunities in the competitive mining sector, potentially driving long-term shareholder value through strategic acquisitions and market expansion.
