BUZZ-Hycroft Mining slips after boosted $150 mln stock sale

Reuters10-09
BUZZ-Hycroft Mining slips after boosted $150 mln stock sale

Updates with pricing details

** Shares of gold and silver producer Hycroft Mining HYMC.O down 1.3% premarket to $7.07 after above-target equity raise

** Nevada-based HYMC announces pricing ~23.1 mln shares at $6.50 for gross proceeds of $150 mln to expand and accelerate its exploration and drilling programs

** Offering size boosted from $ 100 mln and priced at 9.2% discount to stock's last close

** Co expects to use net proceeds for general corporate and working capital needs, including anticipated paying down and eliminating its existing debt obligations

** BMO lead bookrunner for offering, joined by Paradigm Capital

** HYMC has ~54.6 mln shares outstanding, per the prospectus, giving it about $391 mln market cap through Weds

** Longtime precious-metals investor Eric Sprott's 2176423 Ontario Ltd holds about 17.5 mln shares, and AMC Entertainment AMC.N owns about 2.38 mln shares, per LSEG data

** Sprott and movie theater operator AMC initially bought stakes in HYMC in March 2022, when the miner was on the verge of bankruptcy

** HYMC shares on Weds closed up ~10%. Stock has more than doubled over the past three months as spot gold XAU= and silver XAG= prices surge to record highs GOL/

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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