(AMC) AMC Entertainment Holdings inc. is buying a 22% stake in Hycroft Mining Holding Corp. as it seeks to “lengthen its financial runway.”
The investment by the world’s leading movie-theater chain will be made alongside gold and silver investor, Eric Sprot for a total of $56 million.
AMC and Mr. Sprot will invest $27.9 million each in cash in Hycroft, receiving 23,408,240 units, each consisting of one common share and one common share purchase warrants.
AMC said that the additional 23.4 million warrants in Hycroft will go for $1.07 per share.
AMC CEO Adam Aron lauded the investment, saying it has rock-solid assets while also pointing out that it will help Hycroft stay afloat in the wake of mounting liquidity challenges.
Hycroft’s 71,000 acre mine in Northern Nevada is among the largest in North America, with about 15 million ounces of gold deposit, as well as 600 million ounces of silver. HYMC: NASDAQ is currently up +30.58%, AMC: NYSE is currently down -1.11%
