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WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), currently valued at $214 million in market capitalization, announced Tuesday a non-brokered private placement of $60 million, with investor Eric Sprott accounting for approximately 66% of the subscription and Tribeca Global Natural Resources Ltd. taking the remaining 34%. The stock has shown remarkable momentum, surging over 95% in the past six months according to InvestingPro data.
The private placement, priced at $4.2805 per unit under Nasdaq rules, consists of 14,017,056 units. Each unit includes one share of common stock and half of one common stock purchase warrant. Each whole warrant will be exercisable at $6.00 per share for 24 months with an accelerator provision. InvestingPro analysis indicates the stock is currently trading near its 52-week high, with 11 additional key insights available to subscribers.
Upon closing, expected by September 10, Sprott’s beneficial ownership in Hycroft will increase from approximately 21% to 33%, while Tribeca will hold approximately 8%.
The company plans to use the proceeds to advance its Hycroft Mine in Nevada and for working capital and general corporate purposes. While the company maintains a strong liquidity position with a current ratio of 25.8, InvestingPro data shows the company has been rapidly burning through cash, making this capital raise particularly significant.
The announcement comes as silver prices have reached 15-year highs and following the U.S. government’s recent designation of silver as a critical mineral, which elevates its status to a strategic resource for national security and the economy. With a beta of 2.12, Hycroft’s stock has shown significantly higher volatility compared to the broader market, reflecting both the opportunities and risks in the precious metals sector.
Hycroft, which holds one of the world’s largest gold and silver deposits, recently discovered two new high-grade silver systems at its Nevada property. The company is transitioning from oxide heap leaching operations to a milling operation for processing sulfide ore.
"The new silver growth story at Hycroft is taking shape at a pivotal moment," said Diane Garrett, President and CEO, in the press release statement.
The securities offered in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
In other recent news, Hycroft Mining Holding Corporation has been active with a series of financial and operational developments. The company successfully raised $40.7 million through a public offering of units in June, which increased to approximately $45 million after an over-allotment option in July. This capital raise saw Eric Sprott’s 2176423 Ontario Ltd. increasing its ownership stake from 7% to 22%, while about 15 new institutions joined the shareholder registry. Additionally, Hycroft Mining announced a $43.75 million public offering of 12.5 million units at $3.50 per unit, with each unit comprising one common share and one-half of a common stock purchase warrant. The proceeds from this offering are expected to support exploration activities, working capital, and general corporate purposes.
The company is set to begin its 2025-2026 Exploration Drill Program at the Hycroft Mine in Nevada, with 14,500 meters of core drilling planned. This exploration will focus on expanding high-grade opportunities at the Brimstone and Vortex areas, alongside newly identified target areas east of Brimstone. These developments highlight Hycroft Mining’s strategic focus on enhancing its exploration capabilities and strengthening its financial position.
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