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.
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 Unites States Securities
Exchange Act of 1934, as amended, or the Unites 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. These risks may include
exploration activities and findings 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 Company's business, cash flows, financial condition and
results of operations. Please see our "Risk Factors" set forth our
Annual Report on Form 10-K for the year ended December 31, 2021, and other reports 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 believes are 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 contained 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, and we undertake no obligation to
update those statements or to publicly announce the results of any
revisions to any of those statements to reflect future events or
developments.
Cautionary Note Regarding Mineral Resources
The mineral resource estimates included in this press release
and extracted from the 2022 Hycroft Technical Summary Report, have
been prepared in accordance with the requirements of the
Modernization Rules as set forth in subpart 1300 of Regulation
S-K which became widely applicable on January 1, 2021. These
disclosures differ in material respects from the prior requirements
set forth in Industry Guide 7, including in that mineral resource
information was not permitted and mineral resources have been
calculated in accordance with the provision of subpart 1300 of
Regulation S-K. These standards differ significantly from the
disclosure requirements of Industry Guide 7 in that mineral
resource information contained herein may not be comparable to
similar information disclosed by U.S. companies that have not
implemented the Modernization Rules promulgated by the SEC.
Under SEC standards, mineralization, such are mineral resources,
may not be classified as a "mineral reserve" unless the
determination has been made that the mineralization could be
economically and legally produce or extracted at the time of the
reserve determination. However, for a reserve to exist, we must
have a justifiable expectation, based on applicable laws and
regulations, that issuance of permits or resolution of legal issues
necessary for mining and processing at a particular deposit will be
accomplished in the ordinary course and in a timeframe consistent
with a current mine plans. The terms "mineral resource", "measured
mineral resource", "indicated mineral resource" and "inferred
mineral resource" and "inferred mineral resource" are defined and
used in accordance with the Modernization Rules. You are
specifically cautioned not to assume that any part or all of the
mineral deposits (including mineral resources) in these categories
will ever be converted into mineral reserves, as defined by the
SEC. You are further cautioned that, except for any portion of
mineral resources, as applicable, classified as mineral reserves,
mineral resources do not have demonstrated economic value. Inferred
mineral resources have a high degree of uncertainty as to their
existence as to whether they can be economically or legally mined.
Under the Modernization Rules, estimates of inferred mineral
resources may not form the basis of an economic analysis. It cannot
be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category. A significant amount of
exploration must be completed in order to determine whether an
inferred mineral resource may be upgraded to a higher category.
Therefore, you are cautioned not to assume that all or any part of
an inferred mineral resource exists, that it can be economically or
legally mined, or that it will ever be upgraded to a higher
category. Likewise, you are cautioned not to assume that all or any
part of measured or indicated mineral resources will be upgraded to
mineral reserves.
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SOURCE Hycroft Mining Holding Corporation