WINNEMUCCA, Nev., August 4, 2022 /PRNewswire/ — Hycroft Mining Holding Corporation (Nasdaq: HYMC) (“Hycroft” or the “Company”), a gold and silver exploration and development company that owns the Hycroft Mine in the prolific mining region of Northern Nevadaannounces that it has filed its 10-Q for the second quarter of 2022.
Diane GarrettChairman and CEO commented: “This is an exciting and promising time for the Hycroft Mine as we step up Hycroft’s largest exploration program in almost a decade to follow up on several previously identified intercepts and higher grade anomalies and assess the potential of this world district. class size resource. The results of this exploration program will be important to the mine plan for sulphide operation. Our activities this year and next are critical to bringing Hycroft up the value chain.”
Reporting on the quarter, Garrett continued: “We are very pleased with our continued improvement in safety, as evidenced by our trailing twelve-month TRIFR of 0.28. Our operational team continues to execute and exceed our plans, including produce more gold from the leach plates than we had estimated by inventorying and identifying areas of existing leach pads where additional ounces of gold can be recovered. We continue to advance technical studies and process design for the pressure milling and oxidation process”.
Highlights of the second quarter of 2022
Safety: Hycroft’s safety performance continued to improve with a total reportable incident frequency rate (TRIFR) of 0.28 at the end of the second quarter of 2022 at the end of the second quarter of 2022. This represents an approximate reduction of 56% in TRIFR compared to 0.64 at the end. of 2021. Russell 3000 Index – Hycroft was added to the Russell 3000 Index in June. The Russell 3000 is a broad market index that measures the performance of the top 3,000 publicly traded US companies by market capitalization. Leaching Operations: Gold recoveries for the three and six months ended June 30, 2022 were 6,487 and 10,924 ounces, respectively, and silver recoveries were 18,566 and 30,515 ounces, respectively. Currently, ore processing to leach pads is expected to continue through the end of 2022 with an immaterial residual recovery of ounces through the first quarter of 2023. Cash Position – The Company closed the second quarter of 2022 with $157.8 million in cash on hand and complied with debt covenants. The company has approximately 5,800 ounces of gold inventory at the refinery pending liquidation. Variability Testing Program: To date, the Company has received approximately 95% of test results from its metallurgical program. This test run is designed to determine final grind size, flotation recovery rates, and overall process flow sheet design. Exploration – En July 2022, we commenced the 2022 – 2023 exploration program, which is the largest exploration program at the Hycroft Mine in nearly a decade. The 2022-2023 exploration program will focus on higher grade opportunities identified during 2021 and a systematic approach to understanding the genesis of the Hycroft mine deposit, including potential feeder systems. The 2022-2023 exploration program will include approximately 100,000 feet of RC drilling and approximately 25,000 feet of core drilling. The focus of the 2022 – 2023 exploration program activities is as follows: drilling to widen and expand the high-grade vortex zone as defined in the Hycroft TRS 2022; 2021 drill program high interception tracking; Drill three zones at depth that were identified in previous geophysical work indicating high potential for feeder zones; and Drilling directed outside the known resource area to assess the potential of the district. More than 60,000 acres of the company’s land position remain unexplored. Infill Drilling: In addition to the exploration mentioned above, the Company will also perform targeted infill drilling in existing deposits where there is limited drilling. Based on the surrounding geology and drilling results, we are optimistic that additional limited drilling could convert the material currently modeled as tailings to an ore classification in the resource model. This would reduce strip ratio, transportation costs, equipment costs and increase revenue in ongoing engineering and design work. Additionally, based on the results of this additional infill drilling, the Inferred Mineral Resources could be upgraded to higher resource ratings within and adjacent to the current pit boundaries.
Adjustment to the conditions of HYMCZ guarantees
In May 2020MUDS Acquisition Sub, Inc. (“MUDS”) acquired Hycroft Mining Corporation’s (“HMC”) interests in its direct subsidiaries and substantially all of its other assets and assumed substantially all of HMC’s liabilities, including a certain bonus agreement dated October 222015. This warrant agreement requires an adjustment to the associated issued and outstanding warrants (Nasdaq: HYMCZ) when Hycroft Mining Holding Corporation (formerly MUDS) issues equity to “Restricted Persons” as defined in the Guarantee Agreement.
Turned on August 3, 2022, the Company issued a notice of adjustments under the Warrant Agreement notifying the holders of the outstanding HYMCZ warrants originally issued by HMC. As a result of the issuance of equity awards under the HYMC 2020 Performance and Incentive Payment Plan in an aggregate amount of 2,570,602 restricted stock units convertible into shares of common stock and the prospective issuance of up to 500,000 shares of common stock to restricted persons, the The terms of the HYMCZ warrant were adjusted as follows:
(1) the exercise price of each HYMCZ Warrant is reduced $40.31 per ordinary share a $39.90 by ordinary share; (2) the number of shares of common stock issuable upon the exercise of each HYMCZ warrant increases from 0.28055 to 0.28347; and (3) as adjusted, the total number of common shares issuable upon full exercise of the 12,721,901 outstanding HYMCZ warrants increases from 3,569,051 to 3,606,256 common shares.
About Hycroft Mining Holding Corporation
Hycroft is a US-based gold and silver company that develops and explores the Hycroft mine located in the world-class mining region of Northern Nevada.
FOR MORE INFORMATION contact [email protected] or visit our website at www.hycroftmining.com.
Cautionary Note 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 the United States Private Securities Litigation. Reform Act of 1995. All statements, other than statements of historical fact, including herein and public statements by our officers or representatives, that deal with activities, events or developments that our management expects or anticipates will occur or may occur in forward-looking statements, including but not limited to such things as future business strategy, plans and objectives, competitive strengths and the expansion and growth of our business. The words “estimate,” “plan,” “anticipate,” “expect,” “try,” “believe,” “goal,” “budget,” “can,” “might,” “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 intent identify statements prospective Forward-looking statements address activities, events or developments that the company expects or anticipates will occur 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 business, cash flows, condition financial and the results of the Company’s operations. Please see our “Risk Factors” set forth in 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 not to attribute 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 to differ from those anticipated, estimated or anticipated. Although these forward-looking statements were based on assumptions that the company believed to be reasonable when made, caution is cautioned that forward-looking statements are not guarantees of future performance and that actual results, performance or achievements may differ materially from facts or suggested for the forward-looking statements contained in this press release. In addition, 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 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 press release speak only as of the date of such statements, and we undertake no obligation to update such statements or publicly announce the results of any revisions to any such statements to reflect future events or developments.
SOURCE Hycroft Mining Holding Corporation