Silver Crown Royalties Inc. (Cboe: SCRI, OTCQX: SLCRF, BF: QS0) has signed a definitive agreement to acquire a silver royalty on Soma Gold Corp.'s (TSXV: SOMA) El Bagre Gold Mining Complex in Antioquia, Colombia, for US$10,000,000 in cash. The royalty covers 90% of silver produced from the producing asset, which includes the Cordero underground mine. The transaction is expected to be immediately accretive to Silver Crown on a per-share basis and is anticipated to increase the company's attributable silver ounce revenue by approximately 29% in 2027 and 57% in 2028.

Key Points

  • Silver Crown Royalties Inc. (Cboe: SCRI, OTCQX: SLCRF, BF: QS0) and Soma Gold Corp. (TSXV: SOMA)
  • Silver Crown signed a definitive royalty agreement dated October 31, 2026 to acquire a 90% silver royalty on the El Bagre complex for US$10,000,000
  • Minimum deliveries total 305,500 ounces of silver over approximately five and a half years; royalty converts to a 7.5% NSR on silver for the life of mine thereafter
  • Investors may be watching the first tranche closing expected on or before November 30, 2026, and discharge of existing security by December 31, 2026

Two-Tranche Payment Structure and Closing Conditions for El Bagre Royalty

The US$10,000,000 purchase price is payable in two tranches. The first tranche of US$3,000,000 (less a US$75,000 work fee previously paid) is due at closing, expected on or before November 30, 2026, at which point the royalty will be granted at 30% of its full terms. The second tranche of US$7,000,000 follows the discharge of security held by Soma's existing gold financier and registration of first-ranking security in favour of Silver Crown, upon which the royalty increases to 100% of its full terms. If the discharge is not completed by December 31, 2026, Silver Crown may require Soma to repurchase the royalty for US$3,000,000 plus interest.

Minimum Silver Delivery Schedule and Life-of-Mine Royalty Terms

During the Delivery Period, Silver Crown will receive the greater of 90% of payable silver produced or scheduled minimum deliveries totalling 305,500 ounces over approximately five and a half years, paid quarterly in cash at the LBMA silver price less a fixed 3% deduction. After the Delivery Period concludes, the royalty converts to a 7.5% net smelter return royalty on silver for the life of the operation. The El Bagre complex has been in continuous production for over a decade and currently processes ore from the Cordero underground mine through an on-site gold processing plant.

Portfolio Impact and Strategic Fit for Silver Crown's Royalty Business

The acquisition adds a third producing jurisdiction to Silver Crown's portfolio, reducing concentration in Peru. Following completion, the company will hold nine silver royalties across seven projects. The announcement states the purchase price represents less than 6% of Silver Crown's current market capitalisation, characterising it as efficient capital deployment. The transaction was reviewed by Mitchell Lavery, P.Geo., a Qualified Person under National Instrument 43-101, though the company notes it has not independently verified Soma's underlying technical disclosure and is relying on Soma's public filings.