Corporate update issued by Silver Crown, detailing current business-related developments.
In a recent announcement, Silver Crown Royalties Inc. (SCRI, OTC: SLCRF, OTCQX: SLCRF, FRA: QS0) has revealed that Gold Mountain Mining Corp. and its subsidiaries, Bayshore Minerals Incorporated and Elk Gold Mining Corporation, have been placed under receivership proceedings.
Elk Gold Mining Corporation, a subsidiary of Gold Mountain Mining Corp., is currently undergoing receivership proceedings as of August 2025. This development has created uncertainty, but it does not nullify the existing royalty agreements for Silver Crown Royalties Inc.
Silver Crown Royalties Inc. continues to hold an active 90% silver net smelter return (NSR) royalty on the producing Elk Gold Mine. The royalty agreement includes minimum delivery obligations (6,000 ounces of silver annually), life-of-mine expected silver deliveries exceeding 600,000 ounces, and bonus payments tied to increased production. This structure is designed to buffer the company’s revenue streams from disruptions like those Elk Gold is facing.
Peter Bures, CEO of Silver Crown Royalties Inc., stated that the company's prudent approach to royalty agreements and diversification was designed to offer a buffer against such events.
Silver Crown Royalties Inc. emphasises a diversified royalty portfolio to mitigate potential revenue impacts while awaiting further developments. The company aims to minimise the economic impact on mining projects while maximising returns for shareholders.
For further information, please contact Silver Crown Royalties Inc. at Telephone: (416) 481-1744 or Email: [email protected].
It is important to note that this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States, or any other jurisdiction.
The Elk Gold Royalty information can be found in the Company's continuous disclosure documents available under the Company's profile on SEDAR+ at sedarplus.ca.
The ongoing operational and financial challenges for Elk Gold Mining Corp. do not currently terminate Silver Crown’s Elk Gold royalty revenue stream, though the full impact will depend on future developments in Elk Gold’s receivership process.
The company's business model provides investors with precious metals exposure that acts as a natural hedge against currency devaluation while minimising the negative impact of cost inflation associated with production.
However, forward-looking statements and information in this release are subject to significant business, economic, and competitive uncertainties and contingencies. Factors that could cause actual results to differ materially from those contained in forward-looking statements include the impact of general business and economic conditions, risks related to mining operations, accidents, equipment breakdowns, title matters, labour disputes, Silver Crown's ability to enter into definitive agreements, industry conditions, fluctuations in the price of primary commodities, fluctuations in foreign exchange rates and interest rates, government entities interpreting existing tax legislation, stock market volatility, regulatory restrictions, liability, competition, the potential impact of epidemics, pandemics or other public health crises on Silver Crown's business, and loss of key employees.
CBOE Canada does not accept responsibility for the adequacy or accuracy of this news release.
[1] Source: Silver Crown Royalties Inc. [3] Source: Gold Mountain Mining Corp. [5] Source: CBC News
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The ongoing operational and financial challenges for Elk Gold Mining Corporation, a subsidiary of Gold Mountain Mining Corp., do not currently terminate Silver Crown's Elk Gold royalty revenue stream, though the full impact will depend on future developments in Elk Gold's receivership process.
Despite the uncertainties presented by the receivership proceedings, Silver Crown Royalties Inc. continues to hold an active 90% silver net smelter return (NSR) royalty on the producing Elk Gold Mine, providing a steady source of revenue.
