A shareholder has sued Hycroft Mining, its senior leadership and billionaire investor Eric Sprott in Delaware Chancery Court. The complaint alleges the board concealed a major silver discovery while allowing Sprott to acquire a 42% stake through a series of transactions without paying a control premium.
The complaint says Sprott's investment was valued at $112 million. Its value rose to $1.28 billion within four months of announcements about high-grade silver discoveries and a significant increase in resource estimates. The lawsuit calls the nearly $1.2 billion increase a windfall for Sprott at the expense of other shareholders.