Kicking smart people when they are down has been a great American pastime since the ink dried on the constitution. We pass on that activity. A SPAC deal gone awful? Complete fair game: Mudrick Capital SPAC and their Deal with Hycroft Mining.

As the saying goes, we are optimistic and busy looking for a few ponies in the field of mudpies left by record IPO/SPAC issuance.

From the Press Release at SPAC Deal Close

HYMC operates its wholly owned Hycroft Mine, a world-class gold and silver producing operation located 55 miles west of Winnemucca in the prolific Northern Nevada mining jurisdiction. In July 2019, Hycroft completed the Hycroft Technical Report, a third-party feasibility study1 supporting its multi-year developed proprietary2 sulfide oxidation and leach process along with M3 Engineering and incorporating resources modeled by SRK Consulting (Reno, NV). Results of the feasibility study were robust indicating a projected life-of-mine (“LOM”) net present value (“NPV”) of $2.1 billion (at a 5% discount rate), a LOM after-tax internal rate of return (“IRR”) of 147.5%, and a payback period of 2.6 years. The Hycroft Mine was restarted in 2019 to demonstrate this proprietary process on a commercial scale.

The Rethink

While our technical team has continued to progress and develop an understanding of the requirements for implementing the Novel Process on a commercial scale, we recently received a completed peer reviewed report from one of our independent technical consultants stating that, for reasons outlined below as well as increased commodity costs, it does not appear that the proprietary two-stage oxidation and leaching process as detailed in the 2019 Technical Report will be economic as designed at current metal prices or those metal prices used in the 2019 Technical Report.

And This Follows