Popular meme stock AMC Entertainment (NYSE:AMC) is up by more than 7% today following a series of company developments.
First, Hycroft Mining (NASDAQ:HYMC) announced it would initiate its largest exploration program in almost a decade. Back in March, AMC announced it would take a 22% stake in the gold and silver mining company. AMC, along with acclaimed metals investor Eric Sprott, invested $27.9 million each in HYMC.
Both parties also received 23.4 million warrants with a five-year term. These warrants carry an exercise price of about $1.07. Since then, Sprott has reduced his stake by about 4 million shares.
During the first quarter, Hycroft mined 5,358 ounces of gold and 16,861 ounces of silver. Meanwhile, the price per ounce of gold has declined by about 5% year-to-date, while silver has fallen by about 17%.
The exploration program will occur at the Hycroft Mine in Northern Nevada. In addition, there has been no exploration drilling at the mine since 2014. Let’s get into the details.
AMC Stock: Hycroft Launches Exploration Program
In a statement, the mining company said the results of a 2021 metallurgical drill program will be used to advance its its sulfide mill operation. CEO Diane R. Garrett added:
“We are grateful to our shareholders and all who contributed to our solid financial position that affords us the ability to advance our corporate strategy of focusing on higher grade opportunities at Hycroft as we work to complete the technical studies for the sulfide mill operation.”
Furthermore, AMC CEO Adam Aron announced last week that Hycroft had hired Alex Davidson as its Vice President of Exploration. Davidson has more than 25 years of open-pit and underground operating experience and most recently worked at Nevada Gold Mines. Aron boasted that Davidson believes Hycroft’s land is a “geologist’s dream” and a “golden opportunity.” In addition, he quipped that Hycroft has only explored about 2% of its 71,000 acres.
A Hycroft technical report disclosed the Hycroft Mine measured and indicated 9.6 million ounces of gold and 446 million ounces of silver as of March 31. The report also inferred resources of 5 million ounces of gold and 150.4 million ounces of silver. The inferred resources are found in oxide, transitional and sulfide ores.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.