We are 3 years into the master plan playing out and now paying out.
Lets recollect the past 3 years.
NASDAQ-listed Mudrick Capital Acquisition Corporation (MUDS) and Hycroft Mining Corporation, the US-based, gold and silver producer in Nevada, have announced the completion of the purchase of Hycroft by MUDS. The shareholders of each of MUDS and Hycroft approved the transaction, which closed on May 29, 2020, creating a new world-class mining company named Hycroft Mining Holding Corporation that will trade publicly on the NASDAQ Capital Market under the ticker symbol HYMC.
Hycroft has sold all of the equity interests of Hycroft’s subsidiaries and substantially all of its other assets to MUDS, and MUDS has discharged and paid or assumed all or substantially all of Hycroft’s liabilities. HYMC has 50.2 million common shares outstanding, as of the consummation of the transaction.
“This is a critical transaction that paves the way for the development of Hycroft into one of the world’s premier gold and silver producers with a long life and in a desirable mining jurisdiction,” noted Randy Buffington, Hycroft Mining President & CEO. “We now have the pieces we need to build a profitable future for the mine, its employees and the surrounding areas.”
HYMC operates its wholly owned Hycroft Mine, a world-class gold and silver producing operation located 55 miles west of Winnemucca in the prolific Northern Nevada mining jurisdiction. In July 2019, Hycroft completed the Hycroft Technical Report, a third-party feasibility study supporting its multi-year developed proprietary sulphide oxidation and leach process along with M3 Engineering and incorporating resources modelled by SRK Consulting. Results of the feasibility study were robust indicating a projected LOM NPV of $2.1 billion (at a 5% discount rate), a LOM after-tax IRR of 147.5%, and a payback period of 2.6 years.
The Hycroft Mine was restarted in 2019 to demonstrate this proprietary process on a commercial scale and, to date, has proven successful. Based on the success of initial operations and the robust feasibility study, Hycroft began implementing the long-term mine plan with the start of construction in April 2020 of the first phase of a large leach pad capable of processing the resource base with more than 30 years of mine life. The funds received from this transaction allow HYMC to construct the new leach pad, expand its existing mining fleet (via rental contracts) and increase production rates. The project is also expected to include a major stacker-conveyor installation in due course, though no details have yet been given on the supplier or design.
Aug. 2020 Hycroft Appoints Diane R. Garrett, Ph.D. As President, CEO & Director
DENVER, Aug. 31, 2020 /PRNewswire/ -- Hycroft Mining Holding Corporation (Nasdaq: HYMC) ("Hycroft" or the "Company"), a gold and silver producer operating the Hycroft mine in the world-class mining region of Northern Nevada, today announced the appointment of Dr. Diane R. Garrett, Ph.D. as the Company's President & Chief Executive Officer, effective September 8, 2020. Dr. Garrett will also join the Company's Board of Directors on that same date.
Dr. Garrett has over 20 years of senior executive management experience in the mining industry and an exceptional track record for developing projects and building companies. Dr. Garrett was President, CEO and Director of Romarco Minerals Inc. where she built and led the team that developed the multi-million ounce Haile Gold Mine from discovery through to final feasibility, permitting and construction. Romarco was subsequently acquired by OceanaGold in 2015 and Dr. Garrett was appointed to the Board of OceanaGold and a member of the Steering Committee for the Haile Gold Mine. Dr. Garrett was most recently the President and Chief Executive Officer of Nickel Creek Platinum Corp. (NCP), a mining exploration and development company, since June 2016. Dr. Garrett is also a Director of NovaGold Resources Inc., a gold company listed on the NYSE American and Toronto Stock Exchange. Prior to her time at Romarco, Dr. Garrett held numerous senior positions in public mining companies including VP of Corporate Development at Dayton Mining Corporation and VP of Corporate Development at Beartooth Platinum Corporation. Early in her career, Dr. Garrett was the Senior Mining Analyst and Portfolio Manager in the precious metals sector with US Global Investors. Dr. Garrett has also served as a director of TriStar Gold, Inc. and Revival Gold Inc. Dr. Garrett received her Ph.D. in Engineering and her Masters in Mineral Economics from the University of Texas at Austin.
David Kirsch, Chairman of the Company's Board of Directors, said "on behalf of Hycroft and its Directors, I want to welcome Diane to the Company. The board believes that her significant experience in permitting, developing and constructing gold mines, moving a precious-metals mining company from the development stage to the successful producer stage and her experience as a seasoned mining executive, all position her to lead our Company towards its next chapter."
"I'm excited to join Hycroft Mining. I appreciate the hard work carried out by current management and the Board that brought the Company to this point and I look forward to working with them to continue unlocking the value of this unique and significant mineral endowment," said Dr. Garrett.
Effective upon Dr. Garrett's appointment as President & CEO, and Director, on September 8, 2020, Mr. Stephen M. Jones will step down from his position as Interim President and Chief Executive Officer, a role he has held since July 1, 2020.
"I want to sincerely thank Steve for his many years of hard work and dedication to our business. Steve was instrumental in getting our deal done to acquire the Hycroft Mine and has been a leader that our team has relied upon for years," said Mr. Kirsch.
Mr. Jones stated, "I have greatly enjoyed my many years at Hycroft and the dedicated team that I have worked with. I am proud of all we accomplished together and look forward to seeing the future of Hycroft with Dr. Garrett at the helm."
About Hycroft Mining Holding Corporation
Hycroft Mining is a US-based, gold and silver producer operating the Hycroft mine located in the world-class mining region of Northern Nevada. The Hycroft mine features one of the largest gold/silver deposits in the world with a low-capital, low-cost process, and a 34-year mine life.
