Hycroft Mining prices $43.75 million public offering of units

WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), whose stock has surged over 93% year-to-date according to InvestingPro data, has priced an underwritten public offering of 12.5 million units at $3.50 per unit, the company announced Today.

Each unit consists of one common share and one-half of a common stock purchase warrant. Each whole warrant will be exercisable at $4.20 per share for 36 months. The gross proceeds are expected to be approximately $43.75 million before deducting underwriting discounts and offering expenses. The offering represents a significant capital raise for the company, which InvestingPro data shows has been rapidly consuming cash reserves while maintaining a debt burden of $128 million.

The company has granted underwriters a 30-day option to purchase up to an additional 1.875 million units, shares, or warrants. The offering is expected to close on June 13, 2025, subject to customary closing conditions.

BMO Capital Markets and Paradigm Capital Inc. are serving as joint book-running managers for the offering, with SCP Resource Finance LP acting as a capital markets advisor.

Hycroft intends to use the net proceeds for further exploration, working capital and general corporate purposes, according to the press release statement.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission.

Hycroft Mining is focused 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 to transition the mine from oxide heap leaching operations to processing sulfide ore. With a market capitalization of approximately $107 million and a Financial Health Score rated as ’FAIR’ by InvestingPro, the company maintains strong liquidity with a current ratio of 16.17.

In other recent news, Hycroft Mining Holding Corporation announced a proposed public underwritten offering of units, aiming to raise approximately $40 million in gross proceeds. Each unit will include one common stock share and one-half of a common stock purchase warrant. The funds from this offering are intended for exploration activities, working capital, and general corporate purposes. BMO Capital Markets and Paradigm Capital Inc. are managing the offering, while SCP Resource Finance LP acts as an advisor. The offering is subject to customary conditions, including a definitive underwriting agreement. Additionally, Hycroft Mining has announced a change in its auditing firm following the merger of Moss Adams LLP with Baker Tilly US, LLP. This change means Baker Tilly will now serve as Hycroft’s independent registered public accounting firm. There were no disagreements with Moss Adams on accounting matters, and the transition is supported by the company’s Audit Committee.

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