Hycroft Mining raises $40.7 million, plans exploration program

WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), which has seen its stock surge over 51% year-to-date according to InvestingPro data, raised $40.7 million through a public offering of units in June, with total proceeds reaching approximately $45 million following the exercise of an over-allotment option in July, according to a press release statement.

The Nevada-based precious metals company reported that Eric Sprott’s 2176423 Ontario Ltd. increased its ownership stake from 7% to 22% as a result of the offering, while approximately 15 new institutions joined the shareholder registry.

Hycroft plans to use the funds to develop its 2025-2026 exploration drill program, which will focus on expanding high-grade silver systems. The program, scheduled to begin in early August, will include 14,500 meters of core drilling along with geophysics and geochemistry programs targeting the Brimstone, Vortex, and Manganese areas.

The company is continuing metallurgical test work for processing sulfide concentrate, with results expected mid-summer that will be incorporated into a technical report planned for the fourth quarter of 2025.

As of June 30, Hycroft reported $68.8 million in unrestricted cash, $30 million in restricted cash, and total debt of $131 million. InvestingPro analysis indicates the company maintains a strong current ratio of 16.17, though it’s currently burning through cash at a concerning rate. Subscribers to InvestingPro can access 8 additional key financial health indicators for HYMC.

The company noted it has maintained a perfect safety record with zero reportable incidents for more than two and a half years, earning a first-place safety award from the Nevada Mining Association for small surface mines.

Hycroft is evaluating the potential to initiate a heap leach operation as an early-stage development ahead of a planned milling operation, citing strong gold and silver prices and the discovery of new oxide target areas.

The Hycroft Mine, located in northern Nevada, is described as having over 64,000 acres of land, with less than 10% explored to date. With a market capitalization of approximately $129 million according to InvestingPro, the company’s extensive unexplored territory represents significant potential value for investors seeking exposure to precious metals exploration.

In other recent news, Hycroft Mining Holding Corporation announced it will initiate a 14,500-meter exploration drill program at the Hycroft Mine in Nevada, focusing on the Brimstone and Vortex areas. This development comes alongside the company’s announcement of a public offering, which is expected to raise approximately $43.75 million. The offering consists of 12.5 million units priced at $3.50 each, with each unit including one common share and one-half of a common stock purchase warrant. These warrants are exercisable at $4.20 per share for 36 months. The funds from the offering are intended for exploration activities, working capital, and general corporate purposes. Earlier, Hycroft had proposed a $40 million public offering, which also aimed to support similar corporate goals. This series of financial activities highlights Hycroft’s strategic focus on expanding its exploration and operational capabilities.

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