Related Party Transactions

12 Months Ended

Dec. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party TransactionDuring the year ended December 31, 2022 and 2021, the Company paid $0.9 million and $1.2 million, respectively, to Ausenco Engineering South USA, Inc. (“Ausenco”) for the preparation of the 2022 Hycroft TRS, 2023 Hycroft TRS and for other engineering services. The Company’s President and Chief Executive Officer is currently a non-executive director for Ausenco’s parent company Board of Directors.

As of December 31, 2022, AMC was considered a related party, because (i) they held more than 10% of the common stock of the Company, and (ii) an AMC representative serves on the Company’s Board of Directors. The AMC representative disclaims any beneficial ownership of the shares of our common stock and all cash payments for directorship are paid directly to AMC. In total, the Company paid the AMC representative $0.2 million, including $0.1 million in cash compensation and granted restricted stock units with a grant date fair value of $0.1 million. As of December 31, 2022, AMC is entitled to receive 61,189 shares of common stock upon the future vesting of restricted stock units.

Certain amounts of the Company’s indebtedness have historically, and with regard to the Subordinated Notes, were held by five financial institutions. As of December 31, 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 year ended December 31, 2022, Interest expense, net of capitalized interest included $4.0 million, for the debt held by the Related Party.

As of December 31, 2021, two of the financial institutions, 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 year ended December 31, 2021, Interest expense, net of capitalized interest included $6.0 million for the debt held by the 2021 Related Parties.

As of December 31, 2022 and 2021, the Related Parties held a total $42.9 million and $63.8 million, respectively, of debt.