HYCROFT ANNOUNCES PRICING AND UPSIZING OF PUBLIC OFFERING OF UNITS

Rhea-AI Summary

Hycroft Mining (NASDAQ: HYMC) has announced the pricing of an upsized public offering of 12.5 million units at $3.50 per unit, expected to raise approximately $43.75 million in gross proceeds. Each unit comprises one common stock share and half of a warrant, with each full warrant exercisable at $4.20 per share for 36 months. The underwriters have a 30-day option to purchase up to an additional 1.875 million units. BMO Capital Markets and Paradigm Capital are serving as joint book-running managers, with SCP Resource Finance as capital markets advisor. The offering is expected to close on June 13, 2025. The company plans to use the proceeds for exploration activities, working capital, and general corporate purposes.

Positive

• Expected to raise $43.75 million in gross proceeds to strengthen the company's financial position
• Proceeds will support exploration activities and working capital needs
• Warrants provide potential additional upside for investors with a 36-month exercise period

Negative

• Offering will result in significant shareholder dilution
• Unit pricing at $3.50 may represent a discount to market price
• Additional dilution possible if underwriters exercise their option for 1.875 million more units

Insights

Financial Analyst

Hycroft Mining secures $43.75M through upsized public offering, boosting liquidity for exploration and operations.

Hycroft Mining has successfully priced its public offering at $3.50 per unit, raising approximately $43.75 million in gross proceeds. The offering, which was upsized to 12.5 million units, provides significant capital infusion for the mining company. Each unit includes one common share plus a half-warrant exercisable at $4.20 for 36 months, creating potential for additional future funding if exercised.

The pricing structure is noteworthy, with the $4.20 warrant exercise price representing a 20% premium to the unit price, suggesting management's confidence in future value appreciation. The company has also secured an option for underwriters to purchase up to an additional 1.875 million units, potentially increasing proceeds further.

The stated use of proceeds for exploration, working capital, and general corporate purposes indicates Hycroft is strengthening its financial position while advancing its mining projects. With BMO Capital Markets and Paradigm Capital as joint book-runners, the offering carries institutional backing, though investors should recognize that this offering will increase the outstanding share count and potentially dilute existing shareholders.

This capital raise comes at a critical time for Hycroft, providing essential liquidity to support operational activities and exploration programs that could potentially enhance the company's resource base. The successful pricing and upsizing signals positive market reception, though the company's ability to effectively deploy this capital toward value-creating activities will ultimately determine long-term impact.

WINNEMUCCA, Nev., June 12, 2025 /PRNewswire/ -- Hycroft Mining Holding Corporation (Nasdaq: HYMC) ("Hycroft" or the "Company") is pleased to announce the pricing of an underwritten offering of 12,500,000 units of the Company (the "Units") at a public offering price of $3.50 per Unit (the "Offering"). Each Unit consists of one share of common stock of the Company and one-half of one common stock purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to purchase one share of common stock of the Company at a price of $4.20 per share, exercisable for a period of 36 months. The shares of common stock and Warrants will be issued separately but can only be purchased together in the Offering. The gross proceeds from the Offering are expected to be approximately $43,750,000, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. In addition, Hycroft has granted the underwriters a 30-day option to purchase up to an additional 1,875,000 units, shares of common stock and/or Warrants, at the underwriters' discretion.

The Offering is expected to close on June 13, 2025, subject to customary closing conditions.

Hycroft intends to use the net proceeds from the Offering for further exploration, working capital and general corporate purposes.

BMO Capital Markets and Paradigm Capital Inc. are acting as joint book-running managers for the Offering. SCP Resource Finance LP is acting as a capital markets advisor to the Company.

The Offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-279292) that was filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"), as amended. A preliminary prospectus supplement relating to and describing the terms of the Offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus, as well as copies of the final prospectus supplement, once available, may be obtained upon request by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, or by email at bmoprospectus@bmo.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Hycroft Mining Holding Corporation

Hycroft Mining Holding Corporation is a US-based gold and silver company developing the Hycroft Mine, among the world's largest precious metals deposits located in northern Nevada, a Tier-One mining jurisdiction. After a long history of oxide heap leaching operations, the Company is focused on completing the technical studies to transition the Hycroft Mine into the next phase of commercial operations for processing the sulfide ore. In addition, the Company is engaged in a robust exploration drill program to further expand the newly discovered high-grade dominant silver systems and unlock the full potential of this worldclass asset, including oxide leaching potential at Manganese.

For further information, please contact:
info@hycroftmining.com

Cautionary Note Regarding Forward-Looking Statements 

This news release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Securities Exchange Act of 1934, as amended, or the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included herein and public statements by our officers or representatives, that address activities, events or developments that our management expects or anticipates will or may occur in the future, are forward- looking statements, including but not limited to such things as future business strategy, plans and goals, competitive strengths and expansion and growth of our business. The words "estimate", "plan", "anticipate", "expect", "intend", "believe" "target", "budget", "may", "can", "will", "would", "could", "should", "seeks", or "scheduled to" and similar words or expressions, or negatives of these terms or other variations of these terms or comparable language or any discussion of strategy or intention identify forward-looking statements. Forward-looking statements address activities, events, or developments that the Company expects or anticipates will or may occur in the future and are based on current expectations and assumptions. Forward-looking statements in this news release relate to, among other things, the closing of the Offering and the timing thereof, the intended use of proceeds of the Offering and the strategic vision and objectives for the Company and expectations regarding exploration potential. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, but are not limited to, risks related to changes in our operations at the Hycroft Mine, including risks associated with the cessation of mining operations at the Hycroft Mine; uncertainties concerning estimates of mineral resources; risks related to a lack of a completed feasibility study; risks related to our ability to re-establish commercially feasible mining operations; industry related risks, including fluctuations in the price of gold and silver; the commercial success of, and risks related to, our exploration and development activities; uncertainties and risks related to our reliance on contractors and consultants; and the availability and cost of equipment, supplies, energy, or reagents. The occurrence of one or more of the events or circumstances described alone or in combination with other events or circumstances may have a material adverse effect on the Company's business, cash flows, financial condition, and results of operations. Please see our "Risk Factors" outlined in our Annual Report on Form 10-K for the year ended December 31, 2024, and other reports we have filed with the SEC for more information about these and other risks. You are cautioned against attributing undue certainty to forward-looking statements. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although these forward-looking statements were based on assumptions that the Company believed were reasonable when made, you are cautioned that forward-looking statements are not guarantees of future performance and that actual results, performance, or achievements may differ materially from those made in or suggested by the forward-looking statements in this news release. In addition, even if our results, performance, or achievements are consistent with the forward-looking statements contained in this news release, those results, performance or achievements may not be indicative of results, performance or achievements in subsequent periods. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statements made in this news release speak only as of the date of those statements. Readers cannot be assured that the Offering will be completed on the terms described above, or at all. We undertake no obligation to update those statements or publicly announce the results of any revisions to any of those statements to reflect future events or developments except as required by applicable law. All forward-looking statements contained in this news release are expressly qualified by the foregoing cautionary statements.

 

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SOURCE Hycroft Mining Holding Corporation

FAQ

What is the size and price of Hycroft Mining's (HYMC) public offering?

Hycroft Mining is offering 12.5 million units at $3.50 per unit, with each unit consisting of one common share and half a warrant, expecting to raise $43.75 million in gross proceeds.

How will Hycroft Mining (HYMC) use the proceeds from its 2025 offering?

Hycroft intends to use the net proceeds for further exploration activities, working capital, and general corporate purposes.

What are the terms of the warrants in HYMC's 2025 public offering?

Each whole warrant will be exercisable to purchase one share of common stock at $4.20 per share for a period of 36 months.

Who are the underwriters for Hycroft Mining's 2025 public offering?

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

When is HYMC's 2025 public offering expected to close?

The offering is expected to close on June 13, 2025, subject to customary closing conditions.