Hycroft Mining announces $40 million public offering of units

WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), currently valued at $107 million in market capitalization, announced today a proposed public underwritten offering of units aiming to raise approximately $40 million in gross proceeds. The announcement comes as InvestingPro data shows the company has been quickly burning through cash while operating with a significant debt burden.

Each unit will consist of one common stock share and one-half of a common stock purchase warrant, with each whole warrant exercisable to purchase one share of common stock. The company plans to use the net proceeds for exploration activities, working capital and general corporate purposes. The stock has shown remarkable momentum, gaining over 77% in the past six months and 91% year-to-date.

BMO Capital Markets and Paradigm Capital Inc. are serving as joint book-running managers for the offering, while SCP Resource Finance LP acts as a capital markets advisor. The offering will be priced according to market conditions, with final terms to be determined when entering an underwriting agreement.

The underwriters will receive a 30-day option to purchase up to an additional 15% of the base offering in units, common stock shares, and/or warrants at their discretion.

The offering is being conducted through an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. Closing of the transaction remains subject to customary conditions, including the execution of a definitive underwriting agreement.

Hycroft Mining focuses on developing its Hycroft Mine in northern Nevada, which the company describes as one of the world’s largest precious metals deposits. The company is working on technical studies to transition the mine from oxide heap leaching operations to processing sulfide ore.

This information is based on a press release statement issued by the company.

In other recent news, Hycroft Mining Holding Corporation announced a proposed public underwritten offering aiming to raise approximately $40 million in gross proceeds. The company plans to offer units consisting of one share of common stock and one-half of one common stock purchase warrant, with final pricing terms yet to be determined. The proceeds from this offering are intended to fund exploration activities, working capital needs, and general corporate purposes. BMO Capital Markets and Paradigm Capital Inc. are serving as joint book-running managers for this offering. Additionally, SCP Resource Finance LP is acting as a capital markets advisor to Hycroft Mining.

In a separate development, Hycroft Mining announced a change in its independent registered public accounting firm following the merger of Moss Adams LLP with Baker Tilly US, LLP. The personnel from Moss Adams will continue their work under Baker Tilly, which has been appointed as the new independent auditor by Hycroft’s Audit Committee. Moss Adams’ audit reports for the fiscal years ending December 31, 2023, and 2024, did not contain any adverse opinions, except for a note on going concern uncertainty for 2024. There were no disagreements reported between Hycroft and Moss Adams regarding accounting principles or auditing procedures.

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