AMC Theatres Buys $28 Million Stake in Gold and Silver Mining Company
16.03.2022 - 01:15
/ variety.com
Rebecca Rubin Film and Media ReporterAMC Theatres, the biggest cinema chain in the world, is buying a 22% stake in Nevada-based gold and silver mining company Hycroft Mining Holding Corp.AMC’s $27.9 million cash investment in Hycroft is the company’s latest attempt to shore up its finances after COVID-19 forced movie theaters to close. After evading bankruptcy and embracing its status as a meme stock last year, AMC announced plans to expand its business outside of box office by selling popcorn in shopping malls around the country.“AMC is playing on offense again with a bold diversification move.
We just purchased 22% of Hycroft Mining (NASDAQ: HYMC) of northern Nevada. It has 15 million ounces of gold resources! And 600 million ounces of silver resources! Our expertise to help them bolster their liquidity,” AMC’s CEO Adam Aron wrote on Twitter.
AMC is playing on offense again with a bold diversification move. We just purchased 22% of Hycroft Mining (NASDAQ: HYMC) of northern Nevada.
It has 15 million ounces of gold resources! And 600 million ounces of silver resources! Our expertise to help them bolster their liquidity. pic.twitter.com/LihqZguwnd— Adam Aron (@CEOAdam) March 15, 2022The investment also includes the 71,000-acre Hycroft Mine in northern Nevada, which houses 15 million ounces of gold and 600 million ounces of silver.
Upon the news, AMC shares rose 6.78% to $14.48 on Monday, while Hycroft shares ended the day up 9.35% to $1.52.AMC said on Tuesday that Eric Sprott, a leading metals investor, will also invest $27.9 million in cash in Hycroft in exchange for more than 23.4 million units. The deal will make AMC and Sprott the company’s second-largest stockholders.“Our investment to buy 22% of Hycroft Mining
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