Silver Crown Royalties Acquires 1,000 Ounces of Physical Silver in Strategic Financial Move

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 in the silver royalty sector, where maintaining exposure to the underlying commodity while managing financial risk is crucial for long-term success. The discounted purchase price further enhances the strategic value of this acquisition, providing additional upside potential for shareholders should silver prices appreciate in the future.

This transaction highlights the company's proactive approach to capital management and its commitment to aligning corporate assets with its core business focus. By holding physical silver alongside its royalty portfolio, Silver Crown Royalties creates a more integrated exposure to the silver market while maintaining the financial stability necessary to pursue additional royalty opportunities as they arise.