Gold Guru and Theater Chain Find Money in NV Mining Co.


Shares of Hycroft Mining Holding Corp. traded up 14% after the silver and gold mining company announced it had received a $56 million equity investment from well-known precious metals investor Eric Sprott and blockchain operator AMC Entertainment cinema.

Precious metals development company Hycroft Mining Holding Corp. (HYMC:NASDAQ), which owns and operates the Hycroft mine located approximately 54 miles west of Winnemucca, Nevada, today announcement “a $56 million private equity placement with precious metals investor Eric Sprott and AMC Entertainment Holdings Inc. (AMC:NYSE).”

President, CEO and Acting President of Hycroft Mining Holding, Diane Garrett, said, “We couldn’t be happier to announce this transformational investment in the future of Hycroft, anchored by Eric Sprott, one of the leading global precious metals investors, and AMC Entertainment Holdings. , which has proven expertise and ability to meet liquidity challenges and raise capital to optimize the value of important underlying assets. Collectively, their investment significantly improves Hycroft’s liquidity position and provides years of financial leverage.

“Furthermore, their confidence underscores the world-class nature of Hycroft’s gold and silver deposit and our potential to unlock value at a pivotal time in its development. We look forward to working alongside our new investors to move Hycroft up the value chain,” said Garrett. added.

The company said the private placement is expected to close on or about March 15, 2022. Under the terms of the investment agreement, Mr. Sprott and AMC will both make a cash investment of $27.9 million in company and will each receive 23,408,240 units in return, each unit comprising one Hycroft common share and one common share purchase warrant. The firm said the units are priced at $1.193 and the warrants will be valid for five years at an exercise price of $1.068 per share.

The company said that when the transaction is completed, Mr. Sprott and AMC will each own approximately 21.8% of Hycroft’s outstanding common shares, making them the company’s second largest shareholders. The company said that under the terms of the investment, AMC will have the right to appoint a representative to serve on Hycroft Mining’s board of directors.

The company said it plans to use the new capital raised for general purposes for things like working capital, debt restructuring, investments, investments, additional exploration and possibly for advancing the initial assessment in the Hycroft Mine 2022 Technical Report Summary to a pre-feasibility and/or feasibility study.

In addition to the private placement, the company said it has taken steps to recapitalize its balance sheet, which will provide it with greater flexibility in the future. The company said that “it has entered into an agreement in principle with its lead lending partner, Sprott Private Resource Lending II (Collector), LP (Sprott), acting as Facility Agent, to extend all repayments of the principal debt to a bullet payment in May 2027, commencing with the current maturity date of May 2025, subject to $50 million of new equity, and upon payment of a lender interest adjustment of 3 $.3 million which will be capitalized and added to the principal due at maturity.The company noted that the arrangement to extend the maturity date will include certain loan hedging conditions and covenants.

Hycroft said that “it has also reached an agreement with its other second lien holders that, subject to $50 million in new equity, they will extend the term of the loan by two years to December 2027. with 10% continuing interest in kind. Payments.”

Hycroft Mining Holding Corp. is an American gold and silver development company that owns, explores, develops and operates the Hycroft mine in northern Nevada. The property covers approximately 72,000 acres and is located approximately 50 miles west of Winnemucca, Nevada, on the western flank of the Kamma Mountains. The Hycroft mine contains a measured and indicated resource of 446.0 Moz Ag and 9.65 Moz Au and an inferred resource of 150.4 Moz Ag and 5.0 Moz Au.

Hycroft Mining started the day with a market capitalization of around $84.0 million with around 60.41 million shares outstanding. HYMC shares opened nearly 95% higher today at $2.71 (+$1.32, +94.96%) from yesterday’s closing price of $1.39. The stock traded today between $1.53 and $2.72 per share and is currently trading at $1.58 (+$0.19, +13.67%).


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