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Comstock Mining Monetizes Preferred Share Holdings; Reduces Debt by $2 million
October 2, 2020, Tonogold redeemed the remaining $2.18 million CPS for cash proceeds of $2.616 million, representing 120% of the CPS face value. This transaction allowed the Company to reduce its promissory notes, from $4.475 million to $2.5 million, reducing interest expense.
The Company has also realized approximately $1.386 million in cash proceeds from the sale of 3,587,833 common shares at an average price of approximately $0.40 per share and continues to hold 18,189,945 common shares with a current estimated value of $7.1 million and holds a $4.475 million 12% Convertible Secured Note Receivable, due September 20, 2021. The Company retains 1.5% NSR royalties on all of Tonogold's exploration and development properties and a 25% portion of a 4% NSR of certain Comstock Lode mineral claims.
Mr. De Gasperis, Executive Chairman and CEO stated, "Our liquidity has been strengthened and our debt obligations are within striking distance of being fully paid off as we work directly and collaboratively with Tonogold and focus on our own precious-metal developments in the both the Dayton resource and the Spring Valley exploration target areas as well as the commercialization of MCU's mercury remediation technology and systems."
Updates on the 1st??
#Channelchek VRS: Join @comstockmining CEO for an exclusive corporate prersentation, followed by Q&A.
— Noble Capital Markets (@NobleFinancial) September 24, 2020
📅: Thu, Oct 1 @1PM ET
🖥️Register FREE: https://t.co/jlSautvVQn
▶️ $LODE on Channelchek: https://t.co/MyNFqpXjBH#miningstocks #goldstocks #naturalresources #investing #Gold pic.twitter.com/ofUOLfcGts
COMSTOCK MINING LAUNCHES GEOPHYSICAL SURVEYS OF THE SOUTHERN COMSTOCK DISTRICT, DAYTON RESOURCE AREA AND SPRING VALLEY EXPLORATION TARGETS
https://www.comstockmining.com/press-releases/comstock-mining-launches-geophysical-surveys-of-the-southern-comstock-district-dayton-resource-area-and-spring-valley-exploration-targets/
Thank you for posting that.
Comstock Mining Completes Lucerne Transaction
Recognizes an $18 million Gain on Sale
Virginia City, NV (September 14, 2020) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today that it has completed the sale of its Lucerne mine to Tonogold Resources, Inc. (“Tonogold”) for total value and consideration of approximately $25.9 million. The consideration includes $7.1 million in cash, $6.1 million in Convertible Preferred Stock (“CPS”), and a $4.475 million, 12% notes receivable, due and payable on September 20, 2021, plus the assumption of $6.7 million in future lease and reclamation obligations, that together represent a permanent reduction of annual operating expenses of approximately $1 million. The CPS had an initial recorded fair value of $7.6 million (and a higher fair value of $10.4 million at June 30, 2020). Comstock retained a 1.5% net smelter return (NSR) royalty on Lucerne and will recognize a tax-free gain on the sale of approximately $18 million, with substantially all of the gain expected in the third quarter.
https://www.comstockmining.com/press-releases/comstock-mining-completes-lucerne-transaction-recognizes-an-18-million-gain-on-sale/
This interview will answer a lot of your questions.
Comstock Mining Extends Mineral Leases; Secures Strategic Purchase Option
Virginia City, NV (September 9, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) and Comstock Northern Exploration, LLC (“Comstock”), a wholly-owned subsidiary of the Company, entered into a Mineral Exploration and Mining Lease Agreement (the “Lease”) with the Sutro Tunnel Company (“Sutro”), in order to lease certain patented mining claims, exploration rights and town lots in the Gold Hill and Virginia City Mining District in Storey County, Nevada (collectively, the “Sutro Properties”). The Company previously had exclusive rights to explore and mine these same properties and mineral claims beginning in 2008.
https://www.comstockmining.com/press-releases/comstock-mining-extends-mineral-leases-secures-strategic-purchase-option/
TNGL DRILLING COMMENCES ON THE COMSTOCK LODE.
La Jolla, California, September 8th, 2020. TONOGOLD RESOURCES, INC. (OTC: TNGL) (“Tonogold” or the “Company”) is pleased to announce the commencement of its initial exploration and evaluation program at the Comstock Lode, Virginia City, Nevada, with the first drill hole having commenced over the weekend. This will be the first modern exploration of the historically significant Comstock Lode....
http://tonogold.com/en/drilling-commences-on-the-comstock-lode/
New CEO Blog post on GeoMagnetic survey
https://www.comstockmining.com/latest-developments/ceo-blog-september-4-2020-geomagnetic-survey/
COMSTOCK MINING CONTRACTS TO LEASE AND SELL DANEY RANCH FOR $2.7 MILLION; POSITIONS STRATEGIC DRILLING SERVICES FOR THE DAYTON RESOURCE AREA AND SPRING VALLEY EXPLORATION TARGETS
https://www.comstockmining.com/press-releases/comstock-mining-contracts-to-lease-and-sell-daney-ranch-for-2-7-million-positions-strategic-drilling-services-for-the-dayton-resource-area-and-spring-valley-exploration-targets/
Have a look at the 2.11 spike from last week. That was directly related to earnings. You have time until the next release.
COMSTOCK MINING SCHEDULES GEOPHYSICAL SURVEYS OF THE SOUTHERN COMSTOCK DISTRICT DAYTON RESOURCE AREA AND SPRING VALLEY EXPLORATION TARGETS
https://www.comstockmining.com/press-releases/comstock-mining-schedules-geophysical-surveys-of-the-southern-comstock-district-dayton-resource-area-and-spring-valley-exploration-targets/
And Leo Drozdoff, board member buys 30k @ 1.00
In case you missed it Alvin Fund files 13g - 1.1 mil for 3.4%
Aside from mcu unit supposedly being up and running tomorrow, its also options day. Should see some volatility.
I got it thanks. MCU should be operational Friday but i’m guessing a few weeks until we hear back. I think the Phillipines unit starts shipping next week. It’s going to be a great second half :=)
This company's stock has such a low market cap I would anticipate more high volatility as improvements continue to be announced in future PR's, especially on the brink of operational revenue.
Hold my beer AND take my money! Perfect!
COMSTOCK MINING EXTINGUISHES SENIOR SECURED DEBENTURE VIA FAVORABLE REFINANCING
https://www.comstockmining.com/press-releases/comstock-mining-extinguishes-senior-secured-debenture-via-favorable-refinancing/
I have several things going on myself that day. I hope someone can post a replay link as well.
New CEO blog! Check the details on next weeks VID Conference.
https://www.comstockmining.com/ceo-blog/ceo-blog-august-6-2020/
https://www.bigmarker.com/series/virtual-investor-day-confere/series_summit?utm_bmcr_source=Noble
2Q Conference Call Today at 11:00 EST
The Company will host a conference call today, July 28, 2020, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The live call will include a moderated Q&A, after the prepared comments by the Company. Please join the event 5-10 minutes prior to scheduled start time. When prompted, provide the confirmation code. The dial-in telephone numbers for the live audio are as follows:
Toll Free: 800-367-2403
Direct: 1-334-777-6978
Confirmation Code: 6733226
The audio will be available, usually within 24 hours of the call, on the Company’s new website:
http://www.comstockmining.com/investors/investor-library
COMSTOCK MINING ANNOUNCES POSITIVE NET INCOME FOR SECOND QUARTER; READIES TRANSPORT OF MERCURY REMEDIATION SYSTEMS TO THE COMSTOCK LODE AND THE PHILIPPINES
https://www.comstockmining.com/press-releases/comstock-mining-announces-positive-net-income-for-second-quarter-readies-transport-of-mercury-remediation-systems-to-the-comstock-lode-and-the-philippines/
The blog update also includes link to Q2 update PR
https://www.comstockmining.com/latest-developments/comstock-mining-announces-second-quarter-2020-update-goal-drives-strategic-value-targets/
Comstock Mining Announces First Quarter 2020 Results;
Goal Drives Strategic Value Targets
This is an excerpt only. Complete version can be found here:
https://www.comstockmining.com/press-releases/comstock-mining-announces-first-quarter-2020-results-goal-drives-strategic-value-targets/?v=7516fd43adaa
Virginia City, NV (May 7, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced selected unaudited financial results for the fiscal quarter ended March 31, 2020.
First Quarter 2020 Selected Strategic Highlights
•
Investment in Mercury Clean Up LLC (“MCU”) increased to $1.6 million with the Comstock-based mercury remediation system scheduled for May 2020, with necessary Nevada permits secured;
•
MCU also signed a definitive joint venture agreement with Clean Ore Solutions OPC, to partner and lead in a major mercury remediation project located in the Philippines, with initial permits also secured;
•
Investment in Tonogold Resources Inc. (“Tonogold”), valued at $8.8 million, represents > 10% ownership;
•
Announced and permitted Tonogold drill plans for June, 2020, on the Occidental Lode and other claims;
•
Extended agreements for the sale of Comstock’s two non-mining properties in Silver Springs, NV, and received an additional deposit totalling $0.4 million cumulatively, toward the $10.1 million sale;
•
Received $0.75 million in expense reimbursements from Tonogold during the first quarter;
•
Received $1 million in prepaid reimbursements from Tonogold for upcoming expenditures, including staff support for local and federal permitting, and geological support for exploration planning and drilling; and
•
Consummated the April acquisition of 25% of Pelen LLC, the owner of the historic Sutro Tunnel Company.
Unaudited First Quarter 2020 Selected Financial Highlights
•
Total operating costs were $1.3 million in Q1 2020, a $0.3 million or 21% improvement over Q1 2019;
•
Interest expense was $0.1 million in Q1 2020, a $0.4 million or 89% improvement over Q1 2019;
•
Net loss was $1.3 million, or ($0.05) loss per share for Q1 2020, as compared to net loss of $1.8 million, or ($0.12) loss per share for Q1 2019, an improvement driven by higher Tonogold expense reimbursements;
•
Net cash used in operations was $0.2 million in Q1 2020, as compared to a net use of $0.9 million in Q1 2019, with improvements resulting from lower operating expenses and lower uses for working capital;
•
Net cash provided by investing activities was $0.14 million in Q1 2020, from non-refundable deposits and proceeds from the sale of certain properties, somewhat offset by investments made in Mercury Clean Up;
•
Cash and cash equivalents at March 31, 2020, were $1.0 million; and
•
Common shares outstanding at March 31, 2020, were 27,850,000 shares.
Comstock Mining Announces Notice of First Quarter 2020 Results, Business Update Conference Call and Debut of New Website
VIRGINIA CITY, Nev., April 28, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Thursday, May 7, 2020 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report First Quarter results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks. The dial-in telephone numbers for the live audio are as follows:
Toll Free: 1-888-297-8935
Direct: 1-647-792-1281
Confirmation Code: 3574748
The audio will be available, usually within 24 hours of the call,
at the Investor’s tab of the Company’s new website:
www.comstockmining.com/investors/investor-library
Additionally, the Company is pleased to announce the debut of its new website, which is accessible at its existing uniform resource locator: www.comstockmining.com
Mr. Corrado De Gasperis, Executive Chairman and CEO said, “Our new website features a platform for sharing current and future content about our company, its platform and growth opportunities. We are most proud of the CEO Blog feature as it allows for engaged dialogue about all aspects of the Comstock, northern Nevada and the precious metals industry and is powered by questions from our stakeholders.”
The CEO Blog tab can be accessed directly at this link, where stakeholders can review the most recent CEO Blog as well as previous CEO Blogs: www.comstockmining.com/category/ceo-blog
Comstock Mining Amends Tonogold for Accelerated Gold and Silver Exploration Drilling
VIRGINIA CITY, Nev., March 26, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced that on March 20, 2020, the Company amended and restated its Membership Interest Purchase Agreement (the “Purchase Agreement”) with Tonogold Resources Inc. (“Tonogold”), increasing and accelerating certain expense reimbursements, accelerating certain exploration drilling and development programs, and extending and securing the remaining obligations due toward the purchase of the remaining ownership interests (the “Membership Interests”) in Comstock Mining LLC (“CML”), the entity that owns the Lucerne mine and related obligations.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, "Earlier this year we leased certain mineral rights to Tonogold, including the Occidental Lode (aka, the Brunswick Lode) claims, one of the least explored and more promising mineral claims groupings, running parallel to some of the most significant Comstock Lode discoveries. This amendment allows Tonogold to plan a broader drilling program, with our full collaboration and support. Tonogold has also reimbursed, and we have anticipated certain higher expenses, associated with this effort.”
In consideration for the sale of Lucerne, to date, Tonogold has made non-refundable cash payments of $6.025 million and non-refundable stock payments of $6.1 million and Tonogold received 50% of the Membership Interests of CML. For the remaining cash due, Tonogold issued a 12% secured debt note with principal amount of $5.475 million (the “Note”) dated March 20, 2020, with $1 million payable October 15, 2020, and the remaining $4.475 million payable on September 20, 2021, with cash interest paid monthly. Additional Membership Interest will be delivered to Tonogold proportionately to the cash principal payments received on the Note.
The Convertible Preferred shares (“CP shares”) can be converted to Tonogold common stock any time on or after May 22, 2020. The restated Purchase Agreement adjusted the conversion price for the CP shares to the lower of (1) $0.18 or (2) 85% of the 20-day volume weighted closing price. Tonogold can redeem the CP shares at any time prior to conversion, at a redemption price of 120% of the face value of the CP shares.
The Note is initially secured by the Membership Interests owned by Tonogold and will be secured by all of CML’s assets after the Company’s 11% Debenture has been paid in full and the liens relating thereto have been released. The Note can be prepaid at any time without penalty or premium. The Note can also be converted into common shares of Tonogold, under certain circumstances, at a conversion price equal to the lower of (1) 85% of the twenty (20) consecutive trading day volume weighted average price of Tonogold common stock or (2) an applicable price stepping up to $0.40, at the Note’s maturity date.
COVID-19
On March 12, 2020, Nevada Governor Stephen Sisolak issued a Declaration of Emergency to facilitate the State’s response to the COVID-19 pandemic. The Governor's guidance for the mining industry includes limiting gatherings to no more than 10 people, maintaining social distancing protocols where 10 or less are gathered, limiting travel, and working remotely when possible. The Company is currently operating in alignment with these guidelines for protecting the health of our employees, partners, and suppliers, and limiting the spread of COVID-19.
Liquidity & Capital Resources
The Company had total assets of $39.6 million, total current assets of $13.3 million, current liabilities of $4.4 million and net current assets of $8.9 million, including cash and cash equivalents of $1.0 million at March 25, 2020. The Company’s has approximately $5 million in debt due on January 17, 2021. Delays in management plans, including its asset sales, or accesses to the equity or debt capital markets, from extended market disruptions, coupled with the short term nature the Company’s debt, raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s current capital resources include the aforementioned cash and cash equivalents of $1.0 million, other net working capital resources, including Tonogold’s note receivable to the Company of $5.5 million, the Company’s Convertible Preferred Stock in Tonogold of $6.1 million (valued at $9.1 million at December 31, 2019), escrowed non-mining asset sales of over $10 million, expecting to close in the second quarter and other non-mining assets of over $4 million, plus equity agreements to issue securities, subject to limitations, and a loan commitment agreement with $10.0 million in unused capacity, ($9.5 million, net of fees).
Mr. De Gasperis concluded, “We are excited about Tonogold's plans for exploration drilling during the second quarter of 2020, and MCU’s deployment on both the Comstock and in the Philippines. Our entire staff is working progressively and diligently and we have not experienced any significant disruptions as a result of distancing and remote workplace disbursements that are critical for avoiding the spread of this terrible virus. We are open for business and moving all strategic projects forward, including the sale of our non-mining assets. We look forward to extinguishing our debt during the second quarter and funding these exciting growth initiatives.”
You’re good ;)
Press Release: Comstock Mining Announces 2019 Year End Results; Strategic Transactions Advance Value Targets, Significantly Improved Financial Position, Substantially Reduced Debt
3/19/20, 6:17 AM
Comstock Mining Announces 2019 Year End Results; Strategic Transactions Advance Value Targets, Significantly Improved Financial Position, Substantially Reduced Debt
VIRGINIA CITY, Nev., March 19, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the "Company") (NYSE American: LODE) today announced selected unaudited financial results for the fiscal year ended December 31, 2019.
2019 Selected Strategic and Operational Highlights
-- Approved a transformational strategy focused on precious metal-based
growth (the "Strategic Focus");
-- Completed corporate and legal entity realignment;
-- Closed on the 50% sale of the membership interest in the entity that owns
Lucerne:-- Received $5.9 million in non-refundable cash toward the
Lucerne sale;-- Received $6.1 million in non-refundable stock toward the
Lucerne sale, valued at $9.1 million; and-- Received $2.2 million in
expense reimbursements associated with the Tonogold agreements.
-- Partnered and launched Mercury Clean Up LLC, a mercury remediation, clean
technology growth venture;
-- Completed concurrent reclamations and reduced reclamation bond
liabilities by $0.4 million;
-- Received favorable Court ruling on the Dayton Resource zoning, enabling
accelerated advancement;
-- Increased total assets by 38.3%, to $39.6 million, and reduced total debt
by 41%, to $5.4 million; and
-- Escrowed non-mining assets for sale, with the goal of extinguishing all
debt.
Corrado De Gasperis, Executive Chairman and CEO of the Company, said, "Last year was dedicated to repositioning the Company for precious metal-based growth, including realigning the existing gold and silver assets to facilitate both transactional and development-based growth, partnering twice with Tonogold for advancing our northern mining and exploration properties, partnering with MCU to advance our operating platform for global mercury remediation, partnering with Sierra Springs to sell our Silver Springs non-mining assets and, in each case retaining equity ownership in all partners. We also cleared the zoning on our 100%-owned Dayton resource area, while significantly increasing our assets, decreasing our liabilities and reducing our debt toward extinguishment."
Unaudited Full Year 2019 Selected Financial Highlights
The Company experienced record low operating costs and expenses during 2019, of $5.5 million, including $1.8 million for depreciation and amortization, or a 26.8% reduction from 2018, and a 38.5% reduction when compared to 2017. These 2019 reductions include approximately $2.2 million in cash reimbursements from Tonogold Resources Inc. ("Tonogold"). The Company anticipates a 10% reduction in 2020, from lower administrative costs.
-- Costs applicable to mining were $1.5 million in 2019, a 45.8% improvement
compared to 2018;
-- Exploration and development costs were $0.75 million in 2019, a 21.7%
improvement compared to 2018;
-- Environmental expenses decreased by $0.5 million in 2019, a 194.5%
improvement compared to 2018, driven by a significant reduction in
reclamation liabilities resulting from concurrent reclamation successes;
-- General and administrative expenses were $3.3 million in 2019, a 2.8%
improvement compared to 2018;
-- Net loss was $3.8 million, or ($0.20) loss per share for 2019, as
compared to net loss of $9.5 million, or ($0.79) loss per share for 2018,
with improvement from the cost reduction efforts and Tonogold subsidies;
-- Net cash used in operations was $2.3 million in 2019, as compared to $4.0
million in 2018, a 42.7% improvement compared to 2018, primarily
resulting from cost reductions;
-- Net cash provided by investing activities was $2.6 million in 2019, as
compared to a use of $1.6 million in 2018, a 262.4% improvement compared
to 2018, primarily from Tonogold proceeds for Lucerne;
-- Increased total assets by 38.3%, to $39.6 million, and reduced total debt
by over 41%, to $5.4 million; and
-- Cash and cash equivalents at December 31, 2019, were $1.0 million.
Mr. De Gasperis added, "Our continued cost reduction efforts, coupled with expanded strategic partnerships, now positions us to advance multiple mining, remediation and exploration projects, on the Comstock and globally, at a low net cost and an extremely capital efficient manner, as we begin commercializing our mercury efforts globally."
Comstock Mining's Corporate Realignment & Strategic Transactions Advancing Value
During 2019, the Company's Board of Directors approved a transformational strategy focused on high-value, cash-generating, precious metal-based activities, (the "Strategic Focus") including, but not limited to, metals exploration, engineering, resource development, economic feasibility assessments, mineral production, metal processing and related ventures of environmentally friendly, and economically enhancing mining technologies.
During 2019, the Company entered into agreements, as amended, to sell its interest in the Lucerne mine, through its wholly-owned subsidiary, Comstock Mining LLC, to Tonogold for total consideration of over $24 million ($11.2 million in cash, $6.1 million in stock and approximately $7.0 million in assumed liabilities). The Company also retains a 1.5% NSR royalty on Lucerne and leased other mineral claims through Comstock Northern Exploration.
Figure 1 -- Comstock Corporate Realignment is available at: https:// www.globenewswire.com/NewsRoom/AttachmentNg/89902fa1-46f1-4073-a3e0-890aa6c9ee3a
Comstock Mining Inc. remains as the parent company that wholly owns the realigned subsidiaries except for Comstock Mining LLC which is 50% owned. Comstock Mining LLC, the subject of a Membership Interest Purchase Agreement with Tonogold, owns or controls the Lucerne properties, including those contained in the Northern Comstock Joint Venture. Comstock Processing LLC owns the American Flat processing facility and additional land for potential expansion. Comstock Northern Exploration LLC owns or controls the remaining Storey County mining claims and exploration targets, primarily located north of the Lucerne properties, including the Gold Hill targets and the Occidental Lode. Comstock Exploration & Development LLC owns or controls the Lyon County mining claims and exploration targets, including the Dayton Resource Area and the Spring Valley target. Comstock Industrial LLC owns 98 acres in Silver Springs and water rights. Downtown Silver Springs LLC (DTSS) owns 160 acres in Silver Springs and water rights. Comstock Real Estate Inc. owns the Daney Ranch and Gold Hill Hotel assets. The Company has the option to, but has not yet, acquire up to 25% of Mercury Clean Up LLC.
(Tonogold Membership Interest Purchase Agreement)
On November 18, 2019, Tonogold received 50% of the membership interests of CML. Tonogold will receive the remaining 50% after it has paid the remaining consideration. The Company retains all management control and authority over CML until Tonogold has made the remaining $5.2 million in payments. Accordingly, Tonogold's membership interest in CML will be accounted for as a noncontrolling interest in the consolidated balance sheets.
Mineral Exploration and Mining Lease
During 2019, the Company entered into a renewable mineral lease with Tonogold for certain mineral properties controlled by the Company in Storey County, Nevada (the "Exploration Lease"). The Exploration Lease grants Tonogold the right to use these properties for mineral exploration and development, and ultimately the production, removal and sale of minerals. The Exploration Lease requires exploration spending, permitting, and engineering commitments of a minimum of $1 million per year, for a cumulative total of $20 million over 20 years. Tonogold also committed to specific milestones for issuing three technical reports over the life of the Exploration Lease.
Tonogold will pay a quarterly lease fee of $10 thousand, in advance. The lease fee will escalate 10% each year on the anniversary date of the Exploration Lease. The Exploration Lease also provides for royalty payments after mining operations commence. For the first year following the commencement of mining, royalties will be paid at the rate of 3% of NSR for the properties. The rate will be reduced to 1.5% of NSR thereafter.
MCU, The Comstock and The Carson River Mercury Superfund Site
Comstock has also secured the necessary Nevada permits and approvals for localized mercury remediation efforts. MCU has continued sampling many old Comstock waste dumps and other Comstock sites over the past two weeks. The state-of the-art mercury remediation equipment, specifically, the spiral concentrators, began arriving on site in March, with the remaining system, including the Low-G mercury centrifuges and concentrators, proprietary mechanical, hydro, electro-chemical and oxidation processes, the portable mercury-gold laboratory with assaying equipment and the Dissolved Air Flotation (DAF) wastewater treatment processor now scheduled for April 2020.
MCU is focused on its first domestic (Carson River Mercury Superfund Site) and its first international (Philippines Project) opportunities, as it establishes itself as the global leader in mercury remediation and related services. Comstock has ownership options to acquire 25% of the equity of MCU and other rights that can result in Comstock receiving up to 62.5% participation in each mercury remediation opportunity.
Separately, the Nevada Division of Environmental Protection--Bureau of Air Pollution Control (NDEP) completed its technical review of the applications submitted by Comstock Processing LLC and issued the entity a new Class II Air Quality Operating Permit. Comstock Processing LLC is the 100% owned, permitted platform, with processing equipment and metallurgical labs, that enable the clean-technology platform, joint ventures and partnerships especially in the area of mercury remediation and reprocessing of residual-leached mineralized materials.
Corporate Update, Liquidity & Capital Resources
The Company has not sold any equity during 2020, significantly improving its financial position throughout 2019.
As of December 31, 2019, the Company had cash and cash equivalents of $1.0 million, current assets of $13.3 million and current liabilities of $4.4 million. The Company had total assets of $39.6 million and total liabilities of $16.1 million at December 31, 2019. Total assets increased 38.3% over 2018, and total liabilities decreased 16.4% and the Company reduced its Senior Secured Debenture debt by 44.4% to $4.9 million. The Company expects to extinguish its debt when the $10.1 million sale of its Silver Springs properties closes during the second quarter.
Mr. De Gasperis commented, "We have significantly increased our total assets to almost $40 million, reduced our debt by almost half, and look forward to monetizing our non-mining assets and eliminating our debt. This is the strongest our balance sheet has been since 2011, with the best growth opportunities for gold right in front of us."
Outlook
During the first half of 2020, the Company expects to close on the agreed upon sale of certain non-mining assets located in Silver Springs, NV, to Sierra Springs Enterprises Inc., for total net proceeds of $10.1 million. The agreements were signed during 2019, with $0.3 million of non-refundable deposits made and released to the Company from escrow. The Company will use the remaining $9.8 million of proceeds to extinguish the entirety of its outstanding Senior Secured Debenture obligation, principal and make-whole of approximately $4.9 million, plus accrued interest of approximately $0.3 million. During 2020, the Company expects to receive a total of approximately $2.3 million in cash for expense reimbursements required under the various Tonogold agreements.
The Company's annual operating expenses, including other income and expenses and excluding depreciation, are planned to be $4.9 million for fiscal year 2020, with approximately $2.3 million of that amount currently being reimbursed under the various Tonogold agreements, resulting in 2020 net operating expenses of $ 2.6 million.
Tonogold is currently planning and permitting a drilling program for the Storey County exploration targets, including the leased mineral claims, just north of the Lucerne area, and expects to begin drilling in the second quarter of 2020. Under the Exploration Lease, Tonogold must spend at least $1.0 million per year on exploration.
The Company's 2020 plans also include obtaining the local permits for Dayton, expanding Dayton's current resource and continuing southerly into Spring Valley with incremental exploration programs that include exploration and definition drilling of targets identified by geophysical surveys, surface mapping, prior drilling and deeper geological interpretations that lead to publishing an updated, Dayton NI 43-101 mineral resource estimate.
The Company's 2020 plans also include advancing the investment in and the commercialization of MCU's mercury remediation processing technologies. The Company expects to close on the MCU transactions during the second and third quarters of 2020. MCU plans to commence trial operations in the second quarter of 2020, at the Company's processing facility, to validate the mercury extraction and remediation process, with the objective of remediating the Company's existing properties within the Carson River Mercury Superfund Site, enhancing the values of, and evaluating the potential economic feasibilities for these properties and creating new growth opportunities in mercury remediation by demonstrating MCU's technological and operational effectiveness.
MCU has agreed and plans to commence international reclamation operations in the third quarter 2020. This represents the first real international opportunity for large-scale mercury remediation and environmental reclamations, using MCU's system, establishing MCU as a leader in large scale, mercury remediation projects.
Mr. De Gasperis concluded, "While the markets remain in turmoil, we are methodically strengthening our Company, accelerating our growth and maximizing the breadth of our exposure to gold, in the most innovative, environmentally responsible and capital sensitive way possible. We are looking forward to 2020 and beyond."
Conference Call
The Company will host a conference call today, March 19, 2020, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The live call will include a moderated Q&A, after the prepared comments by the Company. The dial-in telephone numbers for the live audio are as follows:
Toll Free: 1-888-297-8935
Direct: 1-646-828-8143
Confirmation Code: 5910203
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library
Comstock Mining Announces Notice of 2019 Year End Results and Business Update Conference Call
VIRGINIA CITY, Nev., March 11, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Thursday, March 19, 2020 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report 2019 year end results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks. The dial-in telephone numbers for the live audio are as follows:
Toll Free: 1-888-297-8935
Direct: 1-646-828-8143
Confirmation Code: 5910203
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library
Comstock Mining Provides Strategic and Business Updates: Secures International and Nevada Environmental Permits; Enhances Balance Sheet
VIRGINIA CITY, Nev., March 03, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or the “Company”) (NYSE American: LODE) today provided updates on key components of its strategic objectives, including with Mercury Clean Up LLC (“MCU”), Tonogold Resources Inc. (“Tonogold”) and Sierra Springs Opportunity Fund Inc. (“SSOF”).
Strategic Transactions Advancing Value
During 2019, the Comstock Board of Directors approved a transformational strategy focused on high-value, cash-generating, precious metal-based activities (the “Strategic Focus”), including, but not limited to, environmentally friendly and economically enhancing clean mining and processing technologies, precious-metal exploration, resource development, economic feasibility assessments and cash-generating mineral production.
The Company has made major advancements with its venture partners, including MCU, Tonogold and SSOF.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3925e997-3bec-47db-a699-48c97f849bd6
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “We have made progress on four major objectives. We just recently returned from the Philippines, where we secured the permits for MCU’s first major international mercury remediation project on the Naboc River, and also expanded the scope of the project, adding sand and gravel plans for the lower river. Our joint venture partner, Clean Ore Solutions and MCU will commence final sampling and site preparations for delivery of mercury remediation equipment, planned for the second quarter. Tonogold has also expanded plans for drilling and development during the second quarter.”
MCU’s International Joint Venture Secures Permits
Comstock and MCU are collaborating with Oro Industries Inc. (“Oro”) for the manufacture and global deployment of mercury remediation systems with proprietary mechanical, hydro, electro-chemical and oxidation processes to reclaim, treat and remediate mercury from tailings and industrial effluents. Together with MCU’s Philippines-based joint venture partner, Clean Ore Solutions OPC (“COS”), the parties confirmed last week that nine separate permits have been issued that allow for the commencement of mercury remediation within the 24 kilometer Naboc River, a goldmine rich area of Mount Diwata, in the Davao de Oro region of the Philippines (the “Philippines Project”). Rich in ores and mines, the area represents a federal and provincial government priority for intensified rehabilitation and mercury clean up, working with the Philippines Department of Environment and Natural Resources.
The joint venture between MCU and COS will be named Clean Mineral Recovery Technologies (“CMRT”), with the ownership split between COS (60%) and MCU (40%). Testing and staging are expected to commence in March 2020. Oro will commence the manufacture of the mercury remediation systems with planned delivery in July 2020.
Only recently, through the Minamata Convention, has there been a global effort to stop the use of mercury in mining. This United Nations priority has united scientists, NGOs, governments and communities against these practices. More recently, actual engineered technologies and solutions through MCU, have begun testing and evaluating mercury remediation solutions from contaminated sites. This year, governments, led by the Philippines and others, are zeroing in on the biggest mercury polluter of all, gold mines, and have begun prohibiting the use of mercury. MCU, partnered with COS, and coupled with Oro and Comstock, has the technology, equipment, and process know-how, to commence the remediation and rehabilitations of these environments and provide one of the most advanced solutions for remediating mercury contamination and eliminating future use of mercury by providing clean solutions.
MCU, The Comstock and The Carson River Mercury Superfund Site
Comstock has also secured the necessary Nevada permits and approvals for localized mercury remediation efforts. MCU commenced sampling old Comstock waste dumps over the past two weeks. The state-of the-art mercury remediation equipment, specifically, the spiral concentrators, began arriving on site last week, with the remaining system, including the Low-G mercury centrifuges and concentrators, proprietary mechanical, hydro, electro-chemical and oxidation processes, the portable mercury-gold laboratory with assaying equipment and the Dissolved Air Flotation (DAF) wastewater treatment processor scheduled to arrive this month.
MCU is focused on its first domestic (Carson River Mercury Superfund Site) and its first international (Philippines Project) opportunities, as it establishes itself as the global leader in mercury remediation and related services. Comstock has ownership options to acquire 25% of the equity of MCU and other rights that can result in Comstock receiving up to 62.5% of the profits for each mercury remediation opportunity.
Separately, the Nevada Division of Environmental Protection—Bureau of Air Pollution Control (NDEP) completed its technical review of the applications submitted by Comstock Processing LLC and issued the entity a new Class II Air Quality Operating Permit. Comstock Processing LLC is the 100% owned, permitted platform, with processing equipment and metallurgical labs, that enable the clean-technology platform, joint ventures and partnerships especially in the area of mercury remediation and reprocessing of residual-leached mineralized materials.
Mr. De Gasperis, commented, “We are now advancing the mercury remediation globally, and we remain committed to maintaining the permitted platform for processing (Tonogold), remediating (MCU) and developing new clean technologies with our partners. We are pleased with NDEP’s technical review and the resulting enhanced Air Quality permit. Our relationships with NDEP and our recognitions for environmental excellence are second to none, as we leverage this platform for clean, cash-generating, economically enhancing mine processing technologies.”
Comstock Mining LLC and Tonogold Closing
Tonogold now has a 50% membership interest in Comstock Mining LLC, the entity that owns the Lucerne mine. The transaction alone is now expected to deliver at least $26 million of tangible value to Comstock (that is, $11.2 million in cash, $7.6 million in FMV of stock when received and over $7.2 million in assumed liabilities). Tonogold also agreed to subsidize over $2 million in annualized savings. Comstock retains a 1.5% NSR royalty on Lucerne. These royalty and lease agreements may deliver an additional $20-$35 million of cash value to Comstock based on Tonogold’s ability to successfully implement its final mine plans.
Tonogold has paid the Company $100 thousand toward the purchase of Lucerne and $850 thousand toward expense reimbursements during the first quarter of 2020. The remaining $5.175 million in cash owed to the Company represents a secured obligation with payments continuing through June 2020, on the following revised schedule:
Payment Due Date Secured Obligation Due
March 27, 2020 $1.725 million
April 24, 2020 $1.325 million
May 22, 2020 $1.425 million
June 26, 2020 $0.700 million
In addition to the amounts owed above, the Company has received $5.925 million in non-refundable cash payments and $6.10 million in non-refundable Convertible Preferred Stock (“CPS”) payments, since January 2019. This CPS was valued at $7.64 million, when received, and was subsequently re-valued at $9.19 million at December 31, 2019. The Company has recognized gains totaling $1.55 million, in the consolidated statement of operations for the year ended December 31. 2019, for the increases in the fair value of the Tonogold CPS. Once finalized, the transaction is expected to result in a net gain for the Company, in excess of $18 million, most likely during the second quarter.
Sierra Springs Opportunity Fund and Non-mining Asset Sales
Last year, the U.S. Treasury confirmed that all of Storey County and significant parts of Silver Springs, NV, had been certified as Qualified Opportunity Zones. The Company owns non-mining assets in these locations, including substantial lands and senior water rights in Silver Springs, NV, and the Gold Hill Hotel in Storey County, NV.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76df942f-0267-4c8c-b194-7d0526cf3e8b
These two, adjacent qualified opportunity zones are located on growing, high volume, logistical highways, railways and airports, with the State of Nevada investing over $125 million in the new USA Parkway and the four-lane expansion of Highway 50, all converging in Silver Springs, NV.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a19a6833-7617-4f7d-bae6-7a1dda2be422
SSOF was formed to capitalize on the explosive growth of high-tech industries in northern Nevada, and its qualified opportunity zones. During 2019, SSOF raised over $11 million and acquired Silver Springs Regional Airport LLC and an adjacent, 180,000 plus square foot manufacturing complex, both as qualifying opportunity zone businesses. SSOF also secured the rights to thousands of developable acres of land and other assets, including an agreement to purchase Comstock’s Silver Springs properties and water rights, all within the immediate proximity of the Tahoe Reno Industrial (TRI) Center. Comstock expects its SSOF ownership, on a fully diluted basis, to be about 9%.
The Company has definitive agreements to sell its two properties in Silver Springs, and over 200 acre-feet of senior water rights for just over $10 million and has now received an additional $100 thousand deposit (totaling over $400 thousand escrowed) toward the purchase of these properties. The closing is expected in the first quarter of 2020.
Corporate Update
The Company has not sold any equity during 2020, and significantly improved its financial position throughout 2019. As of December 31, 2019, the Company had cash and cash equivalents of $1.0 million, current assets of $13.3 million and current liabilities of $3.4 million. The Company had total assets of $39.7 million, total current assets of $13.3 million, current liabilities of $3.4 million and net current assets of $9.9 million at December 31, 2019. Total assets increased 38.7% over 2018, and total liabilities decreased 16.4% and the Company reduced its Senior Secured Debenture debt by 44.4% to $4.9 million. The Company expects to extinguish the debt when the sale of the two properties in Silver Springs properties for over $10 million closes during the first quarter of 2020.
Net cash provided by investing activities for 2019, was $2.6 million, substantially all from the $5.9 million in non-refundable cash payments for the purchase of Lucerne from Tonogold, offset by $2.4 million used for the purchase of properties, $0.8 million for investment in MCU and $0.3 million for the investment in SSOF.
Net cash used in operating activities for 2019, were $2.3 million, as compared to net cash used in operating activities of $5.0 million for the prior year. The Company's use of cash in 2019, and 2018, was primarily related to environmental expenditures, exploration, mine claim cost and general and administrative. The decrease primarily resulted from dramatically lower net operating expenses due to reimbursements from Tonogold and lower spending.
Effective February 28, 2020, Mr. Juan Carlos Giron informed the Company that he was leaving to pursue other opportunities. Mr. De Gasperis remains the Company’s principal financial, accounting and executive officer, as the Company evaluates all organizational opportunities for best positioning the Company’s for its growth objectives.
Mr. De Gasperis commented, “We have significantly increased our total assets to almost $40 million, reduced our debt by almost half, and look forward to monetizing our non-mining assets and eliminate our debt and funding new growth. This is the strongest our balance sheet has been since 2011, with the best opportunities right in front of us. We thank JC for his energy, passion and contributions and wish him the very best success in his future endeavors.”
The following sequence of pro formas represents additional near-term improvements of Comstock’s financial position over the next four months, giving effect to the elimination of debts and other obligations, including the Northern Comstock JV obligations and transitioning to a debt free, NCJV obligation-free, well-funded Company. The Company has not raised equity in 2020, and looks forward to the non-mining asset sales for eliminating debt and funding growth. The Company expects over $5 million in proceeds from Tonogold and $10 million in proceeds from non-mining assets sales, both under existing agreements, for achieving the estimated pro forma results below.
(US$ in thousands, except per share data. Non-GAAP) Pro Forma - Unaudited
Lucerne Sale (50%)
12/31/2019 Pro Forma Estimate
Post Silver Springs Sales
3/31/2020 Pro Forma Estimate
Lucerne & Daney Sales (100%)
6/30/2020
Cash and Cash Equivalents $ 1,015 $ 4,500 $ 10,000
Assets Held For Sale and Cash Payments Due
Lucerne Properties (1) $ 1,539 $ 1,539 $ -0-
Industrial Land & Water (Silver Springs) 2,739 -0- -0-
Commercial Land (Downtown Silver Springs) (2) 3,590 -0- -0-
Daney Ranch and Gold Hill Hotel 2,625 2,625 478
Total Assets Held For Sale $ 10,493 $ 4,164 $ 478
Cash Obligation Due-From-Tonogold $ 5,275 $ 3,450 $ -0-
Tonogold Convertible Preferred Stock (3) 9,195 9,195 9,195
Total Assets Intended for Sale/Monetization $ 24,963 $ 16,809 $ 9,673
Debt and Other Obligations
Senior Secured Debenture $ 4,929 $ $ -0- $ -0-
Northern Comstock JV 6,590 6,500 -0-
Equipment Financing (CAT) 646 565 -0-
Total Debt and Other Obligations $ 12,165 $ 7,065 $ -0-
Total Common Shares Outstanding(4) 27,236,489 27,236,489 27,236,489
On November 18, 2019, the Company transferred 50% of the membership interest in Comstock Mining LLC, owner of Lucerne, but retained entity control.
Represents the acquisition of the non-mining asset (160-acre Downtown Silver Springs) parcel in December 2019, contracted to sell in February, 2020.
Represents Convertible Preferred Stock from Tonogold with a stated value of $6,100,000 and a fair-market-value of $9,195,000, as of December 31, 2019.
Includes 1,833,332 restricted common shares privately placed in December 2019, for proceeds of $550,000, and rounding for fractional shares.
Outlook
Our 2020 annual operating expenses are planned at $3.9 million, with approximately $2.0 million of that amount currently being reimbursed from Tonogold resulting in net operating expenses for 2020, of less than $2 million, excluding any discretionary exploration and development expenses that would not occur until assets are sold.
During the first and second quarters of 2020, the Company expects to receive an additional $5.2 million in cash from Tonogold toward their purchase of 100% of the membership interest in Comstock Mining LLC, the entity that owns the Lucerne properties. The CPS has a fair market value at December 31, 2019, of $9.2 million, and we plan on monetizing a portion of the CPS during the second half of 2020, depending on price performance and liquidity.
During the first quarter of 2020, the Company expects to close on the agreed upon sale of the non-mining assets located in Silver Springs, NV, for total net proceeds of $10.1 million. The agreements were signed in September, with $0.4 million of non-refundable deposits made into escrow. The Company will use the remaining $9.7 million of proceeds to extinguish the entirety of our outstanding Senior Secured Debenture principal and make-whole obligations of approximately $4.9 million, plus accrued interest of $0.1 million.
Tonogold is currently planning and permitting a drilling program for the northern exploration targets and expects to begin drilling in the second quarter of 2020. Under the Mineral Exploration and Mining Lease, Tonogold must spend at least $1.0 million per year on exploration with 2020, being the first year of the mineral leases.
The Company’s 2020 plans also include obtaining the local permits for Dayton in 2019, expanding Dayton’s current resource with incremental exploration programs that include exploration and definition drilling of targets identified by geophysical surveys, surface mapping, prior drilling and deeper geological interpretations that all lead to publishing an updated, NI 43-101 compliant, mineral resource estimate for the Dayton.
MCU plans to commence trial operations in March 2020, on the Comstock, to validate and fine-tune the mercury extraction and remediation process, with the objective of reclaiming and remediating the Company’s existing properties within the Carson River Mercury Superfund Site (CRMSS), enhancing their values of, and evaluating the potential economic feasibilities for, these properties and creating new global growth opportunities in mercury remediation by demonstrating MCU’s technological and operational effectiveness, efficiency and feasibility.
MCU has agreed to and plans to commence reclamation operations in the second quarter 2020, in the Philippines. This represents our first international project for large-scale mercury remediation and environmental reclamations, using MCU’s system. Testing and staging are expected to commence in March, 2020, and Oro will commence the manufacture of the mercury remediation systems this month with planned delivery in June and July 2020.
I know it’s tempting but try keep it on topic please. :=)
That’s good news! That’s by far the most significant post I’ve seen here in quite some time
Do not miss this presentation. It is a must watch. When the stock price starts exceeding $1.00 and beyond, you’ll know why. Great link!!! Thanks! Posting it again.
https://noble.mediasite.com/Mediasite/Play/9f219bd895b843748528f3737727f2b11d?fbclid=IwAR0sDUfifLJ6FiBNMmGyUYVVzHDeU20csXbYMsBNz_-sdjh7ot9qhJZIIX0
If corrado is the lead on the fund (raising) and that continues indefinitely?, and as lode is a 9.5% owner of the fund, I think that prohibits him from making insider purchases of lode stock as long as he’s connected to both entities.
Comstock Mining Provides Strategic Updates; MCU Secures Major International Remediation Project; Opportunity Fund Strategic Acquisitions
February 11, 2020 06:45 ET | Source: Comstock Mining Inc.
Corporate Realignment
Corporate Realignment
Corporate Realignment
Sierra Springs Opportunity Fund Acquisitions
Sierra Springs Opportunity Fund Acquisitions
Sierra Springs Opportunity Fund Acquisitions
VIRGINIA CITY, Nev., Feb. 11, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or the “Company”) (NYSE American: LODE) today provided updates on key components of the Company’s strategic objectives, including updates on its strategic investees, Mercury Clean Up LLC (“MCU”) and Sierra Springs Opportunity Fund Inc. (“SSOF”).
Strategic Transactions Advancing Value
During 2019, the Comstock Board of Directors approved a transformational strategy focused on high-value, cash-generating, precious metal-based activities, (the “Strategic Focus”) including, but not limited to, environmentally friendly and economically enhancing clean mining and processing technologies, precious-metal exploration, resource development, economic feasibility assessments and cash-generating mineral production.
The Company has made major strategic advancements with its new ventures, including its recent investment in and partnership with Mercury Clean Up LLC and recent investments in and by Sierra Springs Opportunity Fund Inc.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3925e997-3bec-47db-a699-48c97f849bd6
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “MCU has engaged its first international remediation project, signing a landmark, definitive agreement with Clean Ore Solutions, and forming a joint venture where MCU will lead and partner in a major mercury remediation and rehabilitation project in the Philippines. Additionally, SSOF has acquired and owns 100% of Silver Springs Regional Airport LLC and Sierra Clean Processing LLC, a 180,000 plus square foot manufacturing facility adjacent to the Silver Springs Regional Airport.”
MCU Signs Landmark International Joint Venture Agreement
In 2017, over 125 countries and signatories adopted the Minamata Convention, an international treaty that pushes governments to reduce mercury pollution. The treaty bans the mining of mercury ores, requires implementation of the most up-to-date mercury reduction technologies, and instructs mercury-using industries to stop using by 2020.
In June 2019, Comstock Processing LLC, joined MCU, in collaboration with Oro Industries Inc. (“Oro”), for the manufacture and global deployment of mercury remediation systems with proprietary mechanical, hydro, electro-chemical and oxidation processes to reclaim and remediate mercury, and contained metals, from soils and tailings.
On February 7, 2020, MCU signed a definitive joint venture agreement with Clean Ore Solutions OPC (“COS”), to partner and lead in a major mercury remediation project located in the Philippines. The joint venture will be named Clean Mineral Recovery Technologies (“CMRT”), and be between COS (60%) and MCU (40%), with the goal of removing mercury in accordance with government sponsored mercury remediation plans (the “Philippines Project.”)
MCU and COS shall work closely on securing all of the joint ventures rights to the Philippines Project and securing and maintaining all pertinent government permits and approvals using MCU’s mercury remediation technologies. A seven-member JV Board shall include three members from MCU, with equipment deliveries expected this summer.
Only recently, through the Minamata Convention, has there been a global effort to stop the use of mercury in mining. This United Nations priority has united scientists, NGO’s, governments and communities against these practices. More recently, actual engineered technologies and solutions through MCU, have begun testing and evaluating mercury remediation solutions from contaminated sites. This year, governments, led by the Philippines and others, are zeroing in on the biggest mercury polluter of all, gold mines, and have begun prohibiting the use of mercury. MCU, partnered with COS, and coupled with Oro and Comstock, has the technology, equipment, and process know-how, to commence the remediation and rehabilitations of these environments and provide one of the most advanced solutions for remediating mercury contamination and eliminating future use of mercury by providing clean solutions.
MCU, The Comstock and The Carson River Mercury Superfund Site
Comstock and MCU have also secured the necessary Nevada permits and approvals and are beginning to mobilize equipment to commence sampling this week. The state-of the-art mercury remediation equipment is also scheduled to begin arriving on site this week. MCU is focused on its first domestic (Carson River Mercury Superfund Site) and its first international (Philippines Project) opportunities, as it establishes itself as the global leader in mercury remediation and related services. Comstock has ownership options for 25% of MCU and other rights that can result in Comstock receiving up to 62.5% of the profits for each mercury remediation opportunity.
Sierra Springs Opportunity Fund and Non-mining Asset Sales
Last year, the U.S. Treasury confirmed that all of Storey County and significant parts of Silver Springs, NV, had been certified as Qualified Opportunity Zones. The Company owns non-mining assets in these locations, including substantial lands and senior water rights in Silver Springs, NV, and the Gold Hill Hotel in Storey County, NV.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76df942f-0267-4c8c-b194-7d0526cf3e8b
These two, adjacent qualified opportunity zones are located on growing, high volume, logistical highways, railways and airports, with the State of Nevada investing over $125 million in the new USA Parkway and the four-lane expansion of Highway 50, all converging in Silver Springs, NV.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a19a6833-7617-4f7d-bae6-7a1dda2be422
Sierra Springs Opportunity Fund Inc. (“SSOF”) was formed to capitalize on the extraordinary, explosive growth of high-tech industries in northern Nevada, and its qualified opportunity zones.
During 2019, SSOF raised over $11 million and acquired Silver Springs Regional Airport LLC and an adjacent, 180,000 plus square foot manufacturing complex (shown below), both as qualifying opportunity zone businesses.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/85f4599c-ae32-4170-8fcd-5c52452cf4bb
SSOF also secured the rights to thousands of developable acres of land and other assets, including an agreement to purchase Comstock’s Silver Springs properties and water rights, all within the immediate proximity of the Tahoe Reno Industrial (TRI) Center. Comstock expects its SSOF ownership, on a fully diluted basis, to be about 9%.
The Company has definitive agreements to sell its two properties in Silver Springs, and over 200 acre-feet of senior water rights for just over $10 million and has received an additional $100,000 deposit (totaling over $400,000 escrowed) toward the purchase of these properties. The closing dates for these sales is now February 28, 2020. The Company has reduced its debenture down to approximately $4.8 million, and upon completion of the non-mining asset sales, the Company’s remaining debt will be eliminated, plus initial funding for the Company’s growth.
Liquidity and Capital Resources
The following sequence of pro formas represents the near-term transition of Comstock’s financial position over the next 6 months, giving effect to the elimination of debts and other obligations, including the Northern Comstock JV obligations and transitioning to a debt free, JV obligation-free, well-funded Company, positioned for growth. The Company has not raised equity in 2020, and looks forward to the non-mining asset sales for eliminating debt and funding growth. The Company expects over $5 million in proceeds from Tonogold and $10 million in proceeds from non-mining assets sales, both under existing agreements, for achieving the estimated pro forma results below.
(US$ in thousands, except per share data. Non-GAAP) Pro Forma - Unaudited
Lucerne Sale (50%)
12/31/2019 Pro Forma Estimate
Post Silver Springs Sales
2/28/2020 Pro Forma Estimate
Lucerne & Daney Sales (100%)
6/30/2020
Cash and Cash Equivalents $ 1,015 $ 4,500 $ 10,000
Assets Held For Sale and Cash Payments Due
Lucerne Properties (1) $ 1,539 $ 1,539 $ -0-
Industrial Land & Water (Silver Springs) 2,739 -0- -0-
Commercial Land (Downtown Silver Springs) (2) 3,590 -0- -0-
Daney Ranch and Gold Hill Hotel 2,625 2,625 478
Total Assets Held For Sale $ 10,493 $ 4,164 $ 478
Cash Obligation Due-From-Tonogold $ 5,275 $ 4,450 $ -0-
Tonogold Convertible Preferred Stock (3) 9,195 9,195 9,195
Total Assets Intended for Sale/Monetization $ 24,963 $ 17,809 $ 9,673
Debt and Other Obligations
Senior Secured Debenture $ 4,929 $ -0- $ -0-
Northern Comstock JV 6,620 6,320 -0-
Equipment Financing (CAT) 646 593 -0-
Total Debt and Other Obligations $ 12,195 $ 6,913 $ -0-
Total Common Shares Outstanding(4) 27,236,489 27,236,489 27,236,489
(1) On November 18, 2019, the Company transferred 50% of the membership interest in Comstock Mining LLC, owner of Lucerne, but retained entity control.
(2) Represents the acquisition of the non-mining asset (160-acre Downtown Silver Springs) parcel in December 2019, contracted to sell in February, 2020.
(3) Represents Convertible Preferred Stock from Tonogold with a stated value of $6,100,000 and a fair-market-value of $9,195,000, as of December 31, 2019.
(4) Includes 1,833,332 restricted common shares privately placed in December, 2019, for proceeds of $550,000, and rounding for fractional shares.
Comstock Mining LLC and Tonogold Closing
Tonogold now has a 50% membership interest in Comstock Mining LLC, the entity that owns the Lucerne mine. The transaction alone is now expected to deliver at least $26 million ($11.2 million in cash, $7.6 million in FMV of stock received and over $7.2 million in assumed liabilities) of tangible value to Comstock. The agreement also subsidizes $2.2 million in annualized savings and retains a 1.5% NSR royalty on Lucerne plus future rents payable under a Lease-Option for using the Company’s processing facilities. These agreements are expected to and may deliver additional value to Comstock of $20-$35 million based on Tonogold’s final mine plans.
Tonogold is current on payments to date and the remaining $5.175 million in cash owed to the Company represents a secured obligation of Tonogold with payments continuing through June 2020. The stated value of the $6.1 million in Tonogold Convertible Preferred Stock was valued at $7.6 million, when received, and was subsequently valued at $9.15 million at December 31, 2019, by an independent third-party valuation firm.
Value Proposition
Comstock’s foundational value starts with its land, water and mineral rights on and in its mineral properties on the historic, world-class Comstock Lode, and our planned growth from Comstock’s existing mineral properties, including planned resource developments, and new, clean-technology-based ventures from its permitted platform.
This permitted platform includes the 100% owned Comstock Processing LLC, with processing equipment and metallurgical labs, that enable the clean-technology platform, joint ventures and partnerships especially in the area of mercury remediation and reprocessing of residual-leached mineralized materials.
The following table summarizes the components of Comstock’s announced strategies, and upward arrows identifying areas of recent progress, based on the estimated potential of future value contributions for the Company (with the low representing the most known and quantifiable and the high representing least known or most nascent):
(Dollars in millions)
Valuation Targets(1)
Strategic Value Proposition
High
Investment in the Sierra Springs Opportunity Fund, Inc. $ 3.3 ? $ 115.0+
Mercury Clean-up – International Project #2 25.0 62.5+
Mercury Clean-up – Clean Mercury Recovery Technology (Philippines) 25.0 ? 62.5+
Mercury Clean-up – Comstock Remediation Project (USA) 1.7 ? 20.0+
Leach Material Reprocessing – Comstock Project 7.0 60.0+
Dayton Mineral Resource Development 40.0 120.0+
Lucerne Mineral Resource Development 26.0 ? 60.0+
Initial Consolidated Comstock Value Target Ranges $ 128.0 $ 500.0+
(Dollars in millions)
Valuation Estimate
Non-Mining Assets Low
High
Non-Mining Senior Water Rights $ 4.5 ? $ 4.5
Non-Mining Land Values 5.6 ? 10.0
Residual Land Values (post-reclamation) 24.0 32.0
Total Base Land Value $ 34.1 $ 46.5
Note (1): Valuation Targets represent management estimates (please see forward looking statements at the end of this release).
Mr. De Gasperis concluded, “We are making remarkable progress since the fourth quarter of last year. MCU has both signed onto its first international remediation project and commenced drilling on the Comstock, with equipment scheduled to begin arriving in Nevada this week. The launch of SSOF and the OZ Funds closing on $11 million in new capital increased the value of Comstock’s investment to over $3 million. SSOF also closed on its first acquisitions, including Silver Springs Regional Airport LLC and the 180,000 plus square foot Sierra Clean Processing LLC, manufacturing facility and looks to close on the $10+ million purchase from Comstock this month. The platform is positioned for tremendous growth and we are starting to realize the higher values for this progress.”
http://www.globenewswire.com/news-release/2020/02/11/1982895/0/en/Comstock-Mining-Provides-Strategic-Updates-MCU-Secures-Major-International-Remediation-Project-Opportunity-Fund-Strategic-Acquisitions.html
Comstock Mining Provides Strategic Updates; Opportunity Fund Successfully Launched and Acquisitions Closed, NYSE Listing
1/8/20, 5:45 AM
VIRGINIA CITY, Nev., Jan. 08, 2020 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or the “Company”) (NYSE American: LODE) today provided updates on key components of the Company’s strategic objectives.
Corporate Realignment
Corporate Realignment
Northern Nevada Opportunity Zones
Northern Nevada Opportunity Zones
Silver Springs Proximity to Tahoe Reno Industrial Center
Silver Springs Proximity to Tahoe Reno Industrial Center
Strategic Focus, Corporate Realignment and Transformation
In 2019, the Comstock Board of Directors approved a transformational strategy focused on high-value, cash-generating, precious metal-based activities, (the “Strategic Focus”) including, but not limited to, precious-metal exploration, resource development, economic feasibility assessments, mineral production, and related ventures of environmentally friendly and economically enhancing mining and processing technologies. The Company has enabled the Strategic Focus with a legal entity realignment that is facilitating both the disposition of non-mining assets while positioning the development of its 100% owned mineral properties (for example, our Dayton Resource Area and our Spring Valley exploration targets) and a number of highly focused and strategic transactions, ventures and partnerships that facilitate the development of our other mineral properties (for example, Lucerne and our other mineral properties located in Storey County) while advancing investments in new ventures, like Mercury Clean Up LLC and Sierra Springs Opportunity Fund Inc., and its subsidiaries, that successfully acquired the Silver Springs Regional Airport and an adjacent 180,000+ square foot manufacturing facility called Sierra Clean Processing LLC.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6834143a-b3ed-4d2a-bc64-e9dd66e8e007
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our realignment and transformation has repositioned the Company to first unlock unrealized shareholder value and then create and deliver new value from precious metal based innovations and developments, including our Dayton resource and the MCU joint venture.”
Value Proposition
Comstock’s foundational value starts with its land, water and mineral rights on and in the historic, world-class Comstock Lode district, and our planned growth is based on Comstock’s exploitation of existing mineral resources, planned resource developments, new, clean-technology-based ventures from its established and permitted platform.
This platform includes the 100% owned Comstock Processing LLC, that has crushing, leaching, processing, metallurgical labs and equipment, where the Company’s clean-technology platform, joint ventures and partnerships identify and enable opportunities for significant value growth, especially in the area of mercury remediation and reprocessing of residual-leached mineralized materials. The following table summarizes the components of Comstock’s announced strategies and a valuation buildup based on the estimated potential, future contributions to the value of the Company for each opportunity (with the low representing the most known and quantifiable and the high representing least known or most nascent):
(Dollars in millions) Valuation Targets(1)
Strategic Value Proposition Low High
Investment in the Sierra Springs Opportunity Fund $ 2.5 $ 115.0+
Mercury Clean-up – International Project #2 25.0 62.5+
Mercury Clean-up – International Project #1 25.0 62.5+
Mercury Clean-up – Comstock Project 1.5 20.0+
Leach Material Reprocessing – Comstock Project 7.0 60.0+
Dayton Mineral Resource Development 40.0 120.0+
Lucerne Mineral Resource Development 24.0 60.0+
Initial Consolidated Comstock Value Target Ranges $ 125.0 $ 500.0+
(Dollars in millions) Valuation Estimate
Non-Mining Assets Low High
Non-Mining Senior Water Rights $ 4.0 $ 4.5
Non-Mining Land Values 9.0 10.5
Residual Land Values (post-reclamation) 24.0 32.0
Total Base Land Value $ 37.0 $ 47.0
Note (1): Valuation Targets represent management estimates (please see forward looking statements at the end of this release).
Mr. De Gasperis continued, “We made remarkable progress with numerous objectives completed during the fourth quarter of last year. During November, we closed on the sale of 50% of the membership interest in Comstock Mining LLC to Tonogold and effectively facilitated the launch of Sierra Springs Opportunity Fund Inc. In late December, Sierra Springs closed on its first acquisitions including the Silver Springs Regional Airport LLC and the 180,000 plus square foot Sierra Clean Processing LLC, manufacturing facility, both completed just before last year end. We also regained full compliance with our NYSE listing and further escrowed deposits on our non-mining asset sales in Silver Springs. The platform is now repositioned for tremendous growth and we are starting to close and realize the value of this progress.”
Non-mining Asset Sales and the Northern Nevada Opportunity Zones
Last year, the U.S. Treasury confirmed that all of Storey County and significant parts of Silver Springs, NV, had been certified as Qualified Opportunity Zones. The Company owns non-mining assets in these locations, including substantial lands and senior water rights in Silver Springs, NV, and the Gold Hill Hotel in Storey County, NV.
These two, adjacent qualified opportunity zones are located on growing, high volume, logistical highways, railways and airports, with the State of Nevada investing over $125 million in the new USA Parkway and the four-lane expansion of Highway 50, all converging in Silver Springs, NV.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a19a6833-7617-4f7d-bae6-7a1dda2be422
Sierra Springs Opportunity Fund Inc. (“SSOF”) was formed to capitalize on the extraordinary, explosive growth of high-tech industries in northern Nevada, and its qualified opportunity zones, and has already purchased the Silver Springs Regional Airport and an adjacent, 180,000 plus square foot manufacturing complex, and secured the rights to thousands of developable acres of land and other assets, including an agreement to purchase Comstock’s Silver Springs properties and water rights, all within the immediate proximity of the Tahoe Reno Industrial (TRI) Center.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76df942f-0267-4c8c-b194-7d0526cf3e8b
Comstock expects its ownership, on a fully diluted basis, to be approximately 9% of the SSOF.
Non-mining Asset Sales and Repositioned Financial Position
The Company has agreed to sell and escrowed its two properties in Silver Springs, and over 200 acre-feet of senior water rights for just over $10 million and has received an additional $300,000 deposit toward the purchase of these non-mining properties. The closing dates for these sales is now January 31, 2020. The Company has already reduced its debenture down to approximately $4.9 million, and upon completion of the non-mining asset sales, the Company’s remaining debt will be eliminated, plus initial funding for the Company’s planned growth initiatives.
The following sequence of pro formas represents the near-term transition of Comstock’s financial position over the next 6 months, giving effect to the elimination of debts and other obligations, including the Northern Comstock JV obligations and transitioning to a debt free, JV obligation-free, well-funded Company, positioned for growth.
(US$ in thousands, except per share data) Pro Forma
Lucerne Sale (50%)
12/31/2019 Pro Forma
Post Silver Springs Sales
1/31/2020 Pro Forma
Lucerne & Daney Sales (100%)
6/30/2020
Cash and Cash Equivalents $ 1,015 $ 4,500 $ 10,000
Assets Held For Sale and Cash Payments Due
Lucerne Properties $ 769 $ 769 $ -0-
Industrial Land & Water (Silver Springs) 2,739 -0- -0-
Commercial Land (Downtown Silver Springs) (1) 3,590 -0- -0-
Daney Ranch and Gold Hill Hotel 2,625 2,625 487
Total Assets Held For Sale $ 9,723 $ 2,704 $ 487
Cash Obligation Due-From-Tonogold $ 5,275 $ 4,550 $ -0-
Tonogold Convertible Preferred Stock (2)(3)(4) 9,050 9,150 9,150
Total Assets Intended for Sale/Monetization $ 24,058 $ 16,404 $ 9,637
Debt and Other Obligations
Senior Secured Debenture $ 4,929 $ -0- $ -0-
Northern Comstock JV 7,102 7,102 -0-
Equipment Financing (CAT) 699 669 -0-
Total Debt and Other Obligations $ 12,730 $ 7,771 $ -0-
Total Common Shares Outstanding 27,236,489(5) 27,236,489(5) 27,236,489(5)
Represents the acquisition of the non-mining asset (160-acre Downtown Silver Springs) parcel in December 2019, contracted to sell in January 2020.
Represents Convertible Preferred Stock received from Tonogold with a stated value of $4,750 and a fair-market-valued of $5,650 as of September 30, 2019.
Represents Convertible Preferred Stock received from Tonogold with a stated value of $6,000 and a fair-market-valued of $9,050 as of December 31, 2019.
Represents an additional $100,000 of Convertible Preferred Stock at the stated value due to be received from Tonogold in January 2020.
Includes 1,842,446 restricted common shares privately placed in December, 2019, for proceeds of $550,000.
Comstock Mining LLC and Tonogold Closing
Tonogold now has a 50% membership interest in Comstock Mining LLC, the entity that owns the Lucerne mine. The transaction alone is expected to deliver well over $24 million ($11.2 million in cash, $6.1 million in stock and over $7 million in assumed liabilities) of tangible value to Comstock. The agreement also subsidizes $2.2 million in annualized savings and retains a 1.5% NSR royalty on Lucerne plus future rents payable under a Lease-Option for using the Company’s processing facilities. These agreements are expected to and may deliver additional value to Comstock of $20-$35 million based on Tonogold’s final mine plans. The remaining $5.275 million in cash owed to the Company represents a secured obligation of Tonogold with payments continuing through June 2020. The $6.1 million in Tonogold Convertible Preferred Stock is valued at over $9 million at December 31, 2019.
Comstock Processing LLC and Mercury Clean Up LLC
Who was running the show before Corrado and what were the circumstance for him being brought in?
Careful, those would be relevant questions. I know they are good at turning 200k into 2mil through ‘investments’.