Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Hycroft Mining Shares Rocket After AMC Theaters Takes A 22% Stake

Courtesy of ZeroHedge View original post here.

Shares of junior miner Hycroft Mining Holding Corporation (HYMC) are skyrocketing, up more than 90% pre-market on the news that movie theater chain (yes, you read that right, movie theater chain) AMC would be taking a 22% stake in the company. 

The small mining company has just over 60 million shares outstanding and, as of yesterday, had a market cap of under $100 million. This morning, its 26 million share float looks as though it has turned over twice already, setting up for what will likely be a massive volume day. 

AMC wrote in a press release this morning that it is "buying 22% of Hycroft Mining Holding Corporation which holds the 71,000 acre Hycroft Mine in northern Nevada". 

"Independent third-party studies confirm that the Hycroft Mine has some 15 million ounces of gold resources and some 600 million ounces of silver resources. In addition, AMC will receive an additional 23.4 million warrants in Hycroft at $1.07 per share," it told its shareholders. 

AMC invested alongside of well known metals expert Eric Sprott: "We are joined in this investment by Eric Sprott, one of the world’s most acclaimed and most successful gold and silver investors, who is taking an equal 22% stake in Hycroft alongside us. His co-investment underscores our confidence that we have found a profound and unique opportunity for AMC." 

"AMC and Mr. Sprott will each invest $27.9 million in cash in Hycroft in exchange for 23,408,240 units, with each unit consisting of one common share of Hycroft and one common share purchase warrant (the "Units"). The Units are priced at $1.193, which complies with the minimum bid price required by Nasdaq for an at-the-market purchase," the release continued.

CEO Adam Aron said: "Our investment to buy 22% of Hycroft Mining Holding Corporation, and to receive an additional 23.4 million warrants in Hycroft at $1.07 per share is a truly terrific opportunity to potentially strengthen and enrich our company, and thereby create significant value for AMC Entertainment shareholders. It is appealing that the investment requires the commitment of only a nominal amount of AMC cash. Independent third-party studies confirm that the 71,000 acre Hycroft Mine in northern Nevada has some 15 million ounces of gold resources and some 600 million ounces of silver resources. It is one of North America’s largest development sites."

AMC's CEO called the move "playing on offense"…

But it remains to be seen how long the offense lasts for HYMC's stock, as sleuths quickly pointed out that the company had dropped an ATM offering via B. Riley on the very same day of the AMC announcement.

"On March 15, 2022, Hycroft Mining Holding Corporation (the “Company”) implemented an “at the market offering ” program by entering into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Agent”)."

In other words, HYMC is free to sell into today's run up…


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!