Hycroft Mining announces $100 million stock offering to fund exploration

WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), currently trading at $7.16 and showing remarkable momentum with a 15.3% gain over the past week, announced Thursday a proposed public underwritten offering of Class A common stock aimed at raising approximately $100 million in gross proceeds. According to InvestingPro data, the company’s stock is trading near its 52-week high of $7.25, reflecting strong investor interest.

The Nevada-based gold and silver company plans to use the net proceeds to expand and accelerate exploration and drilling programs at its Hycroft Mine. Funds will also address general corporate and working capital needs, including paying down and eliminating existing debt obligations, which the company expects to retire at a discount to face value. With a current market capitalization of $380.77 million and a healthy current ratio of 25.8, InvestingPro analysis indicates the company maintains strong liquidity despite operational challenges.

BMO Capital Markets will serve as the lead book-running manager for the offering, with Paradigm Capital acting as book-running manager. SCP Resource Finance LP will act as a capital markets advisor to Hycroft.

The offering will be priced according to market conditions, with final terms to be determined when entering into an underwriting agreement. Hycroft will grant underwriters a 30-day option to purchase up to an additional 15% of the base offering.

The stock sale is being made through an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission. A preliminary prospectus supplement describing the offering terms will be filed with the SEC.

Hycroft Mining operates the Hycroft Mine in northern Nevada, which the company describes as among the world’s largest precious metals deposits. After a history of oxide heap leaching operations, the company is working to transition the mine into processing sulfide ore while conducting exploration to expand silver systems and develop the property’s potential.

Completion of the offering remains subject to customary conditions, including entering into a definitive underwriting agreement, according to the company’s press release statement. For investors seeking deeper insights, InvestingPro offers 11 additional exclusive tips and comprehensive financial metrics to better evaluate Hycroft’s investment potential.

In other recent news, Hycroft Mining Holding Corporation announced a $60 million private placement, with significant contributions from investors Eric Sprott and Tribeca Global Natural Resources Ltd. This move comes as silver prices reach a 15-year high. Additionally, Hycroft reported raising $40.7 million through a public offering, with total proceeds reaching approximately $45 million after an over-allotment option. Eric Sprott’s 2176423 Ontario Ltd. notably increased its ownership stake in Hycroft from 7% to 22% following this offering. The company is also set to begin a 14,500-meter drill program at its Nevada mine, focusing on expanding high-grade opportunities at the Brimstone and Vortex areas. Meanwhile, MindWalk Holdings Corp has made strides in its AI-designed GLP-1 therapeutics program, revealing a new connection between GLP-1 biology and a second pathway related to healthy aging. This discovery supports the development of a dual-pathway regimen involving MindWalk’s proprietary therapeutic. These developments reflect ongoing strategic efforts by both companies in their respective fields.

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