(Bloomberg) — AMC Entertainment Holdings Inc. said it’s buying 22% of a gold and silver mining company, marking an unorthodox move for the world’s largest movie-theater chain and a past darling of meme-stock investors. The cinema giant is investing in Hycroft Mining Holding Corp. alongside Eric Sprott, a gold and silver investor, AMC said in a statement Tuesday.
The parties’ equal stakes total $56 million, “which will help Hycroft considerably lengthen its financial runway,” AMC said. The investment from AMC is a much-needed boost for Denver-based Hycroft Mining, which is trying to get the mine up and running on a sustainable, commercial basis.
Hycroft’s 71,000-acre mine in northern Nevada has 15 million ounces of gold deposits and 600 million ounces of silver, AMC said, pointing to third-party studies. Shares of Hycroft, which reported $31.7 million in revenue for the third quarter of 2021, surged 96% to $2.73 in premarket trading at 9:03 a.m. in New York.
AMC rose 4.1% to $14.12. AMC Chief Executive Officer Adam Aron, known for his brash pronouncements as his company’s shares ran up 1,183% last year in volatile trading, cited the box-office success of “Spider-Man: No Way Home” and “The Batman” as boosting AMC’s confidence in its recovery from pandemic-era struggles.
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