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Investing.com – Hycroft Mining (NASDAQ:HYMC) stock was up 97% in premarket trading Tuesday after AMC Entertainment (NYSE:AMC) is reportedly buying a stake in the precious metals development company.
The multiplex operator, along with Canadian fund manager Eric Sprott, is investing $56 million in the miner as part of diversification efforts. AMC was up 4% premarket.
AMC Chairman and CEO Adam Aron, who often takes to Twitter to make announcements and seek the public’s views on the company’s plans, said Hycroft has 15 million ounces of gold and 600 million ounces of silver.
“AMC is playing on offense again with a bold diversification move,” Aron tweeted, noting that AMC would help Hycroft bolster its liquidity. The multiplex operator and Eric Sprott will each own 21.8% of Hycroft.
The company said the strength from the release of blockbusters like ‘Spider-Man: No Way Home’ and ‘The Batman’ has helped it recover from the pandemic-led fall.
The theater-owner will also receive an additional 23.4 million warrants in Hycroft at $1.07 per share and has been granted the right to appoint a representative to Hycroft’s board.
Investment firm Mudrick Capital Management is currently the largest shareholder, holding a 40.38% stake, according to Refinitiv data.
AMC was at the heart of the meme stock rally that gripped the markets for more than half of 2021. That frenzy saw the company raise funds, retire debt, accept payment in Bitcoin, and launch non-fungible tokens.
