Hycroft Mining Announces $56 Million Equity Investment from Renowned Precious Metals Investor Eric Sprott and AMC Entertainment

The equity investment recapitalizes the balance sheet and provides the opportunity to unlock the value of its world-class Hycroft gold and silver deposit in Northern Nevada

WINNEMUCCA, Nevada., March 15, 2022 /PRNewswire/ — Hycroft Mining Holding Corporation (Nasdaq: HYMC) (“Hycroft” or the “Company”), a precious metals development company that owns the Hycroft mine located in the world-class mining region of Northern Nevadatoday announced a $56 million private equity placement with a precious metals investor Eric Sprott and AMC Entertainment Holdings, Inc. (NYSE: AMC).

(PRNewsfoto/Hycroft Mining Holding Corporation)

Diane GarrettChairman, Chief Executive Officer and Interim Chairman of Hycroft, commented, “We couldn’t be happier to announce this transformational investment in Hycroft’s future, anchored by Eric Sprott, one of the world’s leading investors in precious metals, and AMC Entertainment Holdings, which has proven expertise and ability to address liquidity challenges and raise capital to optimize the value of important underlying assets. Collectively, their investment significantly improves Hycroft’s liquidity position and provides years of financial leverage. Moreover, their confidence underscores the world-class nature of Hycroft’s gold and silver deposit and our potential to unlock value at a pivotal time in its development. We look forward to working alongside our new investors to move Hycroft up the value chain.”

Private placement conditions
Mr. Sprott and AMC will each invest $27.9 million cash into Hycroft for 23,408,240 units, each unit consisting of one common share of Hycroft and one common share purchase warrant (the “Units”). Units are priced at $1.193 per Unit, which is the minimum bid price required by Nasdaq for a market purchase of a Unit. Each warrant will be exercisable for one common share of Hycroft at a price of $1.068 per share and will have a term of five years from the date of issue. The closing of the private placement is expected to occur on or about March 15, 2022.

As a result of its investment, AMC was granted the right to appoint a representative to Hycroft’s board of directors. Following the closing of the private placement, Mr. Sprott and AMC will become the company’s second largest shareholders, each holding approximately 21.8% of the outstanding common shares of Hycroft.

Use of new capital
Hycroft intends to use the net proceeds of this private placement for general corporate purposes, which may include repayment, refinancing, redemption or purchase of existing debt, working capital or capital expenditures. and other investments, the advancement of the initial assessment in the 2022 Technical Report Summary of a Prefeasibility and/or Feasibility Study and Additional Exploration at the Hycroft Mine.

Unleash additional flexibility through balance sheet recapitalization
The Company also announced that it has entered into an agreement in principle with its principal lending partner, Sprott Private Resource Lending II (Collector), LP (“Sprott”), acting as agent for the facility, to extend all repayments of the main debt with a single payment in fine in May 2027from the current due date of May 2025subject to $50 million new equity capital, and subject to the payment of a $3.3 million lender’s interest adjustment which will be capitalized and added to the principal due at maturity. The extension of the due date of May 2025 for May 2027 will be subject to certain loan coverage conditions.

Hycroft has also entered into an agreement with its second lien holders that, subject to $50 million new equity, they will extend the term of the loan by two years to December 2027 with continued interest-in-kind payments of 10% per annum.

The Company will continue to review and discuss its ability to reduce debt with its current lenders.

About Hycroft Mining Holding Corporation
Hycroft is a United States-based gold and silver development company that owns the Hycroft mine located in the world-class mining region of Northern Nevada.

Caution Regarding Forward-Looking Statements
This press 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 of 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, which 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 items as future business strategy, plans and objectives, competitive forces, and the expansion and growth of our business. The words “estimate”, “plan”, “anticipate”, “expect”, “intend”, “believe”, “target”, “budget”, “may”, “may”, ” will”, “would”, “could”, “should”, “seek” or “should” and similar words or expressions, or negative forms of these terms or other variations of these terms or comparable language or any discussion of strategy or intent to 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.These risks may include the following and the occurrence of one or more of the events or circumstances, alone or in combination with other events or circumstances, may have a material adverse effect on the activities, cash flows, financial condition and results of operations tation of the Company. Please see our “Risk Factors” set out in our 8-Ks and our Annual Report on Form 10-K for the year ended December 31, 2020as amended May 14, 2021, and other reports filed with the SEC for more information on these and other risks. You are cautioned against ascribing 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 the forward-looking statements, there may be other factors that cause results not to be those anticipated, estimated or planned. Although these forward-looking statements are based on assumptions that the Company believes were reasonable at the time they were 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 formulated or suggested. by the forward-looking statements contained in this press release. Furthermore, even if our results, performance or achievements are consistent with the forward-looking statements contained in this press release, such results, performance or achievements may not be indicative of the results, performance or achievements of 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 press release speak only as of the date of such statements, and we undertake no obligation to update such statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.



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SOURCE Hycroft Mining Holding Corporation

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