Silver Crown Royalties Inc. has completed a non-brokered private placement with strategic investor Michael Gentile, raising approximately C$3 million. The transaction involved Gentile purchasing 424,500 units at C$7 per unit, with each unit consisting of one common share and one warrant exercisable at C$8.25 for three years. The company plans to allocate the proceeds primarily toward specific accretive silver royalties it has identified and is advancing, while also bolstering general working capital. This capital infusion positions Silver Crown to expand its portfolio and capitalize on what it describes as a favorable outlook for rising silver prices.
Following the transaction, Michael Gentile now indirectly owns and exercises control over 424,500 common shares, 424,500 warrants, and 50,000 stock options, representing approximately 18.52% of the issued and outstanding common shares on a partially diluted basis. The common shares and warrants underlying the units will be subject to a statutory hold period of four months plus a day from the closing date. As required by securities regulations, Gentile has filed an Early Warning Report in connection with his acquisition. Copies of this report will appear on the company's profile on the System for Electronic Document Analysis and Retrieval at https://www.sedarplus.ca. Prior to this investment, Gentile did not own or exercise control over any common shares or securities exercisable into common shares of Silver Crown Royalties.
The transaction represents a significant vote of confidence in Silver Crown's business model, which focuses on generating free cash flow through silver royalties. The company currently holds five silver royalties and positions itself as offering investors exposure to precious metals while providing a natural hedge against currency devaluation and mitigating production-related cost inflation effects. No finder's fees or commissions were paid in connection with the private placement. The securities have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
