June 18, 2025 – Hycroft Mining Holding Corporation (NASDAQ: HYMC), a precious metals development company focused on its expansive Hycroft Mine in Northern Nevada, has announced a significant insider transaction by major shareholder Eric Sprott.
On June 13, 2025, Sprott acquired 6,350,000 shares of Hycroft Mining stock at an average price of $3.50 per share, totaling $22,225,000.
This transaction, disclosed in a filing with the Securities and Exchange Commission (SEC), increases Sprott’s ownership to 8,190,824 shares, valued at approximately $28,667,884, representing a 344.95% surge in his stake in the company.
Eric Sprott, a renowned Canadian billionaire and precious metals investor, has long been a key stakeholder in Hycroft Mining.
His latest purchase underscores his bullish outlook on the company’s future, particularly as it advances its exploration and development efforts at the Hycroft Mine, one of the world’s largest gold and silver deposits, spanning approximately 72,000 acres.
The transaction coincides with Hycroft’s recent public offering, which raised $43.75 million through the sale of 12,500,000 units at $3.50 each.
Sprott’s investment accounted for more than half of this offering, signaling strong confidence in the company’s strategic direction.
The proceeds are earmarked for exploration, advancing technical studies, and general corporate purposes, including potential debt reduction.
Strategic Financial Moves and Market Context
Hycroft’s recent financial maneuvers extend beyond the public offering.
The company has secured an agreement with its primary lending partner, Sprott Private Resource Lending II, to defer all principal debt repayments to a single bullet payment in May 2027, providing critical financial flexibility.
This restructuring, combined with the new equity raise, is designed to support the advancement of the Initial Assessment in the 2022 Technical Report Summary to a pre-feasibility or feasibility study, alongside further exploration at the Hycroft Mine.
The company’s focus on the Hycroft Mine, which holds measured and indicated mineral resources of 9.6 million ounces of gold and 446.0 million ounces of silver as of December 31, 2021, positions it as a significant player in the precious metals sector.
With gold and silver prices showing resilience amid global economic uncertainties, Hycroft’s strategic initiatives are timely.
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Insider Activity and Ownership Dynamics
Sprott’s purchase contrasts with recent insider sales by other Hycroft executives.
For instance, CEO Diane Garrett sold 6,423 shares on June 4, 2025, at $3.08 per share, reducing her position by 2.68% to 233,051 shares.
Similarly, CFO Stanton K. Rideout sold 4,398 shares on the same date at $3.81, decreasing his stake by 3.20% to 132,986 shares.
These sales, while modest in comparison to Sprott’s acquisition, reflect a mixed insider sentiment, though Sprott’s substantial buy is seen as a dominant signal of confidence.
Hycroft’s ownership structure reveals significant insider and institutional interest.
Insiders collectively hold 342.17% of the company, with AMC Entertainment Holdings, Inc. as the largest shareholder, owning 25.8 million shares (103.27% of the company).
Sprott remains the second-largest shareholder, with his current 8.19 million shares representing approximately 9.2% of outstanding shares.
Institutional investors, including hedge funds, own 15.07% of the company, indicating a balanced mix of insider and external investment.
Following the announcement of Sprott’s investment and the public offering, Hycroft’s stock has garnered attention from retail and institutional investors alike.
Posts on X reflect bullish sentiment, with users highlighting Sprott’s investment as a strong endorsement of Hycroft’s plans to develop a starter mine.
One user noted, “Sprott adding shows extreme confidence in Hycroft’s plans forward,” while another emphasized the strategic importance of the capital raise for the next 12 months.
Analyst coverage of Hycroft remains limited, with a “Hold” rating assigned by some, reflecting caution due to the company’s developmental stage and historical financial challenges.
However, the influx of capital and Sprott’s continued involvement may prompt renewed interest from analysts as Hycroft progresses toward production.
Investors and market observers will be closely watching Hycroft’s next steps, particularly as it seeks to transform its world-class asset into a producing mine.
With Sprott’s backing and a clear strategic roadmap, Hycroft Mining Holding Corporation is well-positioned to make significant strides in the precious metals industry.
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If they own 340% of the co., what does that mean?