Hycroft Mining Corp: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

12 Dec 2014capital raising announcement▲ GoodMajor

On December 12, 2014 the company closed the offering announced on December 9, issuing 21,750,000 shares and 10,875,000 warrants for gross proceeds of $21.75M. This completes the thread opened by the December 9 agreement; the shares were sold at $1.00 each, a small fraction of the $10.75 paid in the May 2013 offering.

What it means for a shareholder

21.8m new shares at about $1.00 to raise about $21.8m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held $1,000 of shares (1,000 at the issue price), your slice goes from 0.000958% to 0.000792% of the company. To keep it you'd need 208 more shares - about $208 at the issue price.

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17 May 2013capital raising announcement● NeutralMajor

The bought-deal share sale closed May 17, 2013: 14,000,000 shares at $10.75 for gross proceeds of $150.5M, with an underwriters' option for 2,100,000 more shares (up to $173.1M total if fully used). Proceeds are intended for Hycroft mine capital spending and general corporate purposes. This completes the offering announced May 2 and adds shares to the share count.

What it means for a shareholder

14.0m new shares at $10.75 to raise about $151m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held $1,000 of shares (93 at the issue price), your slice goes from 0.000103% to 0.0000895% of the company. To keep it you'd need 14 more shares - about $151 at the issue price.

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20 July 2007capital raising announcement▲ GoodMajor

The private placement closed on July 16, 2007: 3,696,000 units at CDN$4.60 for CDN$17 million (about US$16.3 million). Each unit has one share and one warrant to buy another share at CDN$5.75 for two years, so existing holders face possible dilution. The company says proceeds go to developing the Hycroft Mine, working capital and general purposes. Finders got CDN$528,020 and 114,850 warrants at CDN$4.60; Quest Securities, chaired by Buchan, received part of this. This completes the financing announced on July 12.

What it means for a shareholder

3.7m new shares at C$4.60 to raise about C$17.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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16 July 2007capital raising announcement▲ GoodMajor

The company added three independent directors (John Ivany, D. Bruce Sinclair, Robert Wardell) and named Robert Buchan Executive Chairman. It also raised the planned private placement from 3,260,870 to 3,696,000 units and from CDN$15 million to CDN$17 million, with insiders subscribing about CDN$6,435,400 (Buchan about CDN$4,002,000). The board approved $4.8 million for second-half 2007 exploration, about $3.1 million of it at Hycroft.

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