Hycroft Announces Public Offering of Units

Rhea-AI Summary

Hycroft Mining (NASDAQ: HYMC) has announced a proposed public offering of units to raise approximately $40 million. Each unit consists of one common stock share and one-half warrant, with each full warrant exercisable for one common share. BMO Capital Markets and Paradigm Capital Inc. are serving as joint book-running managers, with SCP Resource Finance LP acting as capital markets advisor. The offering's final pricing and terms will be determined when entering the underwriting agreement. Underwriters will receive a 30-day option to purchase up to an additional 15% of the base offering. The company plans to use the proceeds for exploration activities, working capital, and general corporate purposes. The offering is being made through an effective S-3 shelf registration statement.

Positive

• Company aims to raise $40 million to fund exploration and operations
• Offering is backed by reputable financial institutions as joint book-running managers
• Includes 30-day option for underwriters to purchase additional 15% of base offering

Negative

• Potential dilution for existing shareholders through new share issuance
• Warrant component could lead to additional future dilution if exercised
• Share price likely to face downward pressure due to increased supply

Insights

Capital Markets Analyst

Hycroft's $40M public offering will dilute existing shareholders but provide needed capital for mining operations and exploration.

Hycroft Mining has announced a $40 million public offering of units comprising common stock and warrants. This financing structure indicates the company needs substantial capital infusion, likely due to cash burn from ongoing mining operations and exploration activities. The offering will dilute existing shareholders significantly, with additional potential dilution from warrant exercises later.

The underwriting involvement of BMO Capital Markets and Paradigm Capital suggests institutional interest, but also reflects the difficulty mining companies face in securing traditional debt financing. The additional 15% overallotment option could push total dilution even higher if exercised.

The stated use of proceeds for "exploration, working capital and general corporate purposes" is notably broad and lacks specifics on allocation. This vagueness suggests the funds may primarily address immediate operational needs rather than specific growth initiatives. For a mining company, this type of financing typically indicates continued cash burn without near-term profitability.

The filing under an effective S-3 shelf registration indicates this offering was planned as part of a broader financing strategy. The dilutive effect will be determined by the final pricing "in the context of the market," which typically means at a discount to current trading prices to ensure sufficient investor interest.

WINNEMUCCA, Nev., June 11, 2025 /PRNewswire/ -- Hycroft Mining Holding Corporation (Nasdaq: HYMC) ("Hycroft" or the "Company") is pleased to announce a proposed public underwritten offering of units of the Company (the "Units") for gross proceeds of approximately $40 million (the "Offering"). Each Unit will be comprised 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.

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 will be priced in the context of the market with the price, total size and other final terms of the Offering and the Units to be determined at the time of entering into an underwriting agreement for the Offering. Hycroft will also grant the underwriters a 30-day option to purchase up to an additional 15% of the base Offering, to acquire Units, shares of Common Stock and/or Warrants (or any combination thereof), at the underwriters' discretion. Closing of the Offering will be subject to a number of customary conditions, including the entering into of a definitive underwriting agreement.

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 will be filed with the SEC and will be 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 completion of the Offering and the terms thereof, the closing of the Offering, 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 of Hycroft Mining's (HYMC) public offering in 2025?

Hycroft Mining is proposing a public offering to raise approximately $40 million in gross proceeds.

What will Hycroft Mining use the proceeds from its 2025 offering for?

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

What is included in Hycroft Mining's (HYMC) offering units?

Each unit consists of one share of common stock and one-half of one common stock purchase warrant.

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.

What options do the underwriters have in Hycroft's 2025 offering?

Underwriters have a 30-day option to purchase up to an additional 15% of the base offering in units, shares, and/or warrants.