Hycroft Mining receives surprise investment boost from US cinema chain

The world’s largest cinema chain AMC Entertainment has announced it is acquiring a 22% stake in gold and silver firm Hycroft Mining Holding Corp, in a surprise cash injection for the Denver-based miner.

AMC will make the US$56 million investment alongside renowned mining investor Eric Sprott. The entertainment company said it will help ‘considerably lengthen its financial runway’.

Hycroft has been trying to get its namesake mine in Northern Nevada into consistent production on a sustainable and commercial basis. The 71,000 acre mine has 15 million ounces of gold and 600 million ounces of silver, AMC said with reference to third-party studies.

In November, Hycroft said it was halting initial mining operations due to rising costs for chemicals and other goods needed at the site, and it would change the way it processes the ore. Production in the third quarter of 2021 was 14,831 ounces of gold and 91,437 ounces of silver.

AMC CEO Adam Aron said: “Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago,”

“It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue. We are confident that our involvement can greatly help it to surmount its challenges — to its benefit, and to ours.”

@RGNonline