Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Certain amounts of the Company’s indebtedness have historically, and with regard to the $80.0 million of Subordinated Notes, were held by five financial institutions. As of June 30, 2022, one of the financial institutions, Mudrick Capital Management, L.P (“Mudrick”), held more than 10% of the common stock of the Company and, as a result, was considered a related party (a “Related Party” or the “Related Parties”) in accordance with ASC 850, Related Party Disclosures. For the three and six months ended June 30, 2022, Interest expense, net of capitalized interest included $1.0 million and $2.0 million, respectively, for the debt held by the Related Party.

As of June 30, 2021, three of the financial institutions, Mudrick, Highbridge Capital Management, LLC (“Highbridge”), Mudrick and Whitebox Advisors, LLC (“Whitebox”), held more than 10% of the common stock of the Company and, as a result, each was considered to be a Related Party. For the three and six months ended June 30, 2021, Interest expense, net of capitalized interest included $1.8 million and $3.6 million, respectively, for the debt held by Related Parties.

As of June 30, 2022 and December 31, 2021, the Related Parties held a total $40.8 million and $63.8 million, respectively, of debt.

Additionally, during the three and six months ended June 30, 2022, the Company paid $0.1 million and $1.1 million to Ausenco Engineering USA South (“Ausenco”) for work performed on preparing an Acid POX milling technical study and incurred an obligation of $0.1 million for other engineering services. The Company’s President and Chief Executive Officer is currently a non-executive director on Ausenco’s board of directors.