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Silver Crown Exercises Option to Upsize Pilar Royalty to 90% of Silver Produced at PGDM Complex
(TheNewswire) TORONTO, ON, August 13, 2024 – TheNewswire – Silver...
About this update from Silver Crown Royalties Inc
[{"type":"text","content":"Silver Crown Exercises Option to Upsize Pilar Royalty to 90% of Silver Produced at PGDM Complex\n\n\n (TheNewswire)\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n TORONTO, ON, August 13, 2024\n \n\n –\n \n\n TheNewswire –\n \n\n Silver Crown Royalties Inc. (“\n \n\n Silver Crown\n \n\n ”,\n“\n \n\n SCRi\n \n\n ” or the “\n \n\n Corporation\n \n\n ”, or the “\n \n\n Company\n \n\n ”) is\npleased announced it has exercised its additional royalty option (the\n“\n \n\n Option\n \n\n ”) under its amended and restated royalty agreement dated\nApril 26, 2024 with Pilar Gold Inc. (“\n \n\n Pilar\n \n\n ”) and its\nBrazilian subsidiary (the “\n \n\n Vendor\n \n\n ”) to increase its royalty to 90% of\nthe aggregate net proceeds of silver sold as a result of the\nprocessing of ores from the PGDM complex and related milling\noperations (\n \n\n “PGDM”\n \n\n ) in Goias State, Brazil. To\nexercise the Option, SCRi paid Pilar US$1,310,000 (less SCRi’s\ntransaction expenses and other previously agreed upon deductions) in\ncash to increase the net smelter return royalty to 90% from 31% of the\ncash equivalent of the silver produced from the PGDM complex. The\nexercise of the Option allows Pilar to pursue certain productivity\nenhancements at PGDM while allowing Silver Crown Royalties to increase\nits revenue base.\n \n\n\n\n Peter Bures, Silver Crown’s Chief Executive Officer,\ncommented: “We’re excited to expand our ongoing partnership with\nPilar’s management and economic interest in the PGDM complex by\nincreasing our royalty to 90% of the cash equivalent of the silver\nproduced. We believe the capital injection will enable Pilar to ramp\nup operations toward full capacity over the next twelve months\nproviding additional benefit to SCRi beyond the upsized minimum cash\nequivalent of 4,000 ounces of silver per quarter payment\nobligation.”\n \n\n\n\n Jeremy Grey, Pilar’s Chief Executive Officer,\ncommented: “With this capital injection, we should be able to\nachieve self-sustaining throughput at Pilar in the near-term, paving\nthe way for a successful operation in the latter part of this year. We\nthank Peter and his team at SCRi for their tremendous support and lo...