A silver screen giant is going for the gold in a different industry.
AMC Theaters announced Tuesday it is spending $27.9 million to buy a 22% stake in the gold and silver mining company Hycroft Mining Holding Corp. The purchase will include Hycroft’s 71,000-acre mine in northern Nevada and more than 23.4 million warrants of Hycroft.
“To state the obvious, one would not normally think that a movie theater company’s core competency includes gold or silver mining,” AMC Theaters CEO Adam Aron said. “In recent years, however, AMC Entertainment has had enormous success and demonstrated expertise in guiding a company with otherwise valuable assets through a time of severe liquidity challenge, the raising of capital, and strengthening of balance sheets, as well as communicating with individual retail investors.”
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Aron wrote on social media that Hycroft has 15 million ounces of gold resources and 600 million ounces of silver resources. He described AMC’s purchase as “a bold diversification move.”
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, 2022
In addition to AMC’s $27.9 million investment, leading gold and silver investor Eric Sprott is making an investment of the same amount. AMC noted the $56 million investment will help Hycroft “considerably lengthen its financial runway” amid “liquidity challenges.”
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The movie theater chain will get to appoint a representative to the Hycroft board of directors.
The price of gold, silver, and platinum all increased amid the war in Ukraine. On March 7, gold surged above $2,000 for trading, and platinum reached $1,125.
