Silver Crown Royalties Inc. has announced a C$3,000,000 strategic investment through a non-brokered private placement by investor Michael Gentile. 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. The company also appointed Gentile as Strategic Advisor to Silver Crown Royalties.
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. He 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 Royalties, stated that Gentile's deep 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 that the company has identified and is advancing, along with bolstering general working capital. This positions Silver Crown to expand its portfolio and capitalize on the favorable outlook for rising silver prices.
Michael Gentile expressed excitement about joining Silver Crown Royalties as a cornerstone shareholder and strategic advisor. He noted that with silver making new record highs, he sees a massive value creation opportunity ahead for the company as it exploits an untapped market opportunity in the silver royalty space. Gentile described the company as a tightly held, well-structured royalty platform that is deeply undervalued and not appreciated by the market, and he looks forward to helping accelerate growth initiatives and increase market presence and awareness.
As compensation for his role as Strategic Advisor, Silver Crown has issued Gentile 50,000 stock options with a strike price of $8.05 for a three-year period. He will also be entitled to participate in Silver Crown's RSU program in accordance with the company's omnibus equity incentive plan.
Silver Crown Royalties, founded by seasoned industry professionals, is a publicly traded silver royalty company dedicated to generating free cash flow. The company currently holds five silver royalties and offers investors exposure to precious metals while providing a natural hedge against currency devaluation and mitigating the adverse effects of production-related cost inflation. The company strives to minimize the economic burden on mining projects while maximizing shareholder returns.
This development signals growing institutional confidence in the silver royalty sector at a time when precious metals are gaining attention as inflation hedges. For business leaders and investors tracking the resources sector, Gentile's involvement represents a significant validation of Silver Crown's business model and growth potential. The strategic investment provides the company with capital to pursue identified opportunities while gaining access to Gentile's extensive network and expertise in junior mining investments.
