Silver Crown Royalties Bolsters Reserves with Strategic Silver Acquisition

Silver Crown Royalties Inc. has acquired 1,000 ounces of physical silver in a strategic financial maneuver that underscores the company's approach to maintaining robust financial reserves. The purchase was completed at an average price of $30.65 per ounce, representing an 8% discount to the 20-day volume-weighted average price and an 11% discount to recent market highs. The total investment of US$30,650 was derived from a spot price of US$30.15 per ounce plus a modest premium of US$0.50 per ounce.

The physical silver will be stored with Money Metals Depository LLC, with the precise storage location pending final confirmation. Peter Bures, the company's Chief Executive Officer, explained the rationale behind the purchase, emphasizing the company's desire to maintain a prudent working capital position while diversifying away from traditional currency holdings. "We feel it is only prudent as a silver royalty company to convert a portion of our cash to physical silver," Bures stated.

The transaction represents a strategic pivot for Silver Crown Royalties, which currently holds four silver royalties, three of which are already generating revenue. By converting cash received from PPX into physical silver bullion, the company is demonstrating its commitment to providing investors with a natural hedge against potential currency devaluation. This approach aligns with the company's broader business model, which seeks to minimize economic risks associated with mining projects while maximizing potential returns for shareholders.

The silver acquisition reflects a deliberate strategy of maintaining financial flexibility and tangible asset value. This move is particularly significant given the company's position as a silver royalty company, making the physical silver acquisition a natural extension of its core business operations. The decision to purchase physical silver rather than maintaining traditional currency holdings represents a calculated approach to wealth preservation and risk management in uncertain economic conditions.

This strategic acquisition positions Silver Crown Royalties to benefit from both the intrinsic value of physical silver and the potential for price appreciation, while simultaneously providing protection against currency fluctuations and inflation. The company's approach of converting royalty-generated cash flows into physical precious metals represents an innovative financial strategy within the mining royalty sector, potentially setting a precedent for other companies in the industry.