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Balance Sheet Strengthened With New Equity Investors Eric Sprott and AMC Entertainment
WINNEMUCCA, Nev., May 4, 2022 /PRNewswire/ — Hycroft Mining Holding Corporation (Nasdaq: HYMC) (“Hycroft” or the “Company”), a gold and silver development company which owns the Hycroft Mine in the prolific mining region of Northern Nevada, announces that it has filed its 10-Q for the first quarter of 2022.
Diane Garrett, President and CEO commented “We are extremely pleased with the results from the first quarter and particularly in welcoming two new investors Eric Sprott and AMC Entertainment. Our strengthened balance sheet allows us to reduce our debt, complete our technical studies and launch a robust exploration program to capitalize on recent exploration results. Several higher-grade intercepts were identified onsite, including the high grade silver Vortex deposit and the initial results from our 2021 drill program also returned higher grades than previously known at the mine. Our work also revealed that silver may be under-estimated in the resource model due to a lack of assays for silver values. The Company is now identifying targets for a drill program to optimize the high-grade and district potential of the mine.”
First Quarter 2022 Highlights
- Safety – Hycroft’s safety performance continued to improve with a 0.29 trailing 12-month total reportable incident frequency rate (“TRIFR”) at the end of the first quarter of 2022, well below industry average of 1.75. Our TRIFR is 0.00 year to date.
- Production – Gold production for the three months ended March 31, 2022, was 5,358 ounces and silver production was 16,861 ounces, in line with forecast. Processing of ore on leach pads will continue until it is no longer economic to do so.
- Finalized Initial Assessment Technical Report – The Company, along with its third-party consultants, completed and filed the Initial Assessment 2022 Hycroft Technical Report with an effective date of February 18, 2022. As of March 31, 2022, the Hycroft Mine had measured and indicated mineral resources of 9.6 million ounces of gold and 446.0 million ounces of silver and inferred mineral resources of 5.0 million ounces of gold and 150.4 million ounces of silver, which are contained in oxide, transitional and sulfide ores.
- Strengthened Balance Sheet: The Company ended the first quarter with a cash position $172.8 million. During the quarter the Company raised gross cash proceeds of $194.4 million through a $55.9 million private placement offering with Eric Sprott and AMC Entertainment and $138.6 million in an at-the-market equity offering program. The Company also: (i) reduced net debt by $20.6 million; (ii) amended its credit agreement with its first lien lender such that no further scheduled payments of principal are required prior to maturity; and (iii) amended both the first lien and second lien credit agreements to extend maturities by two years to May 31, 2027 and December 1, 2027, respectively.
About Hycroft Mining Holding Corporation
Hycroft is a US-based, gold and silver company developing the Hycroft Mine located in the world-class mining region of Northern Nevada.