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June 17, 2024
PI Global Investments

Silver Royalty Co. Strikes Deal for 90% of South American Mine’s Silver

Silver Crown Royalties Inc. has established a royalty purchase agreement with Tucano Gold Inc., expanding the company’s silver portfolio. Read on to see what one expert thinks of a similar public company as Silver Crown considers going public.

Silver Crown Royalties Inc. announced in a press release on January 18, 2024, that it had established a royalty purchase agreement with Tucano Gold Inc., which owns the Mina Tucano Project. Silver Crown is a private company, but it has indicated that it may go public in 2024. 

Tucano Gold Inc.’s property sits on the Vila Nova Greenstone Belt in Guyana, and it is reported to have produced 1,500,000 ounces of historical gold since 2005, which Tucano hopes to increase to 100,000 ounces of gold per year.

According to the press release, the terms of the agreement state that Tucano will provide at least 7,000 ounces of gold per year, or 90% of the payable silver generated by the project, whichever is higher, for a maximum of ten years beginning on the first day of 2025. Peter Bures with Silver Crown stated that the company expects to see incoming revenue from the deal in Q2 of this year. The company reports that Silver Crown will pay CA$1,000,000 in units comprised of one share and a half share purchase warrant of the company worth CA$0.40 and CA$0.80 each, respectively.

Silver Crown’s CEO, Peter Bures, provided a statement regarding the agreement, “We’re very excited to proceed with this royalty transaction — with minimum deliveries starting next year, we’re increasing our silver baseline by 70%, but more importantly, this is an ‘all-equity’ transaction justifying the valuation of SCR by a third party. The Brazil-based restart fits with our near-cash flow in Tier 1 jurisdictions approach as well. We believe this is an excellent accretive addition . . . to our shareholders.”

Silver Expected to Perform Well in 2024

As the American dollar is expected to decline in 2024, many investors might look toward precious metals like silver as a way to safeguard the value of their investments.

According to Jordan Roy-Byrne with The Daily Gold in December of 2023, silver could be set to break out to higher prices if it can clear CA$26. Roy-Byrne reports that if silver can clear this important mile marker, he expects it to move up to CA$33 or CA$34, or possibly CA$50.

Chen Lin with What is Chen Buying? What is Chen Selling? stated that he expected silver prices to be driven up by a depreciating dollar but also by demand from solar panel manufacturers and shifting practices by central banks.

Lin said, “In order to increase efficiency, 25-150% more silver is needed for the future generation of solar panels,” indicating that silver looks like it will be in demand for quite a long time.

Building a Diverse Foundation

Streetwise Reports covered Silver Crown Royalties on December 19, 2023, and the company’s announcement that it had closed a net smelter return royalty agreement with Pilar Gold. The agreement stated that Silver Crown would receive as much as 90% of the silver produced by Pilar Gold’s PGDM Complex.

Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American) is a royalty company occupying a similar niche in the market that has also been looking to expand its reach.

The company recently acquired Nova Royalty Corp. (NOVR:TSX.V), adding the smaller streaming company to its diverse portfolio of assets.

Global Analyst Adrian Day covered Metalla Royalty in December of 2023 and rated the company as a “Top Buy.”

As for catalysts, the company reports that it is anticipating going public this year, which would represent an opportunity for investors.

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Important Disclosures:

  1. 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. and Metalla Royalty & Streaming.
  2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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