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I believe Lode’s market cap shows exactly how absurdly undervalued it is. Diversification will reveal its value in early 2020 and make it much harder for those that have capitalized on shorting the company. As for TNGL, pffft. They havent been the most responsible partner, have they? A pivot away from reliance on their timeliness, or lack thereof, will be a good thing.
Comstock Mining Provides Strategic Overview and Updates;
Value Proposition, Strategic Initiatives and Reverse Stock Split
https://comstockmining.com/news/708-monday-november-25-2019
Comstock Mining Receives Permit Modification; Provides Updates on Mercury Remediation Growth Initiatives
VIRGINIA CITY, Nev., Nov. 20, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock”) (NYSE American: LODE) and Mercury Clean Up (“MCU”) today announced that Comstock recently received approval for an Engineering Design Change (“EDC”) from the Nevada Division of Environmental Protection (“NDEP”) approving the Mercury Remediation Pilot Test Plant located within Comstock's existing leach pad.
Comstock Processing LLC and Mercury Clean Up LLC
During 2019, Comstock Processing LLC, Comstock’s wholly-owned subsidiary that owns all of the property, plant, equipment and permits at 1200 American Flat Rd., near Virginia City, NV, entered into a definitive agreement with Mercury Clean Up LLC (“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, treat and remediate mercury, and the entrapped precious metals, from soils, waste and tailings.
Comstock recently received approval for the EDC from NDEP approving the Mercury Remediation Pilot Test Plant that will be located within Comstock's existing heap leach pad under Comstock’s existing Water Pollution Control Permit (NV-2000109). The mercury treatment and recovery test location will be at the north end of Comstock’s existing double lined Heap Leach Pad and the treatment plant will be a zero-discharge, closed-loop system. This NDEP and U.S. Environmental Protection Agency (“EPA”) based approvals for sampling, analysis, and management of historically-contaminated soils on Comstock properties enables MCU to commence sampling and testing materials over the next two weeks, with the objective of identifying the best target areas for mercury remediation. Comstock provides the platform for testing and MCU conducts the sampling and trials that prove efficacy, scalability and feasibility.
Sampling will begin with using a portable, gasoline-powered auger drill mounted on a hand-truck dolly that extracts samples from 4-6 inch diameter holes from the material in a grid fashion and the samples will be analyzed for mercury and precious metals. The sampling auger drill is scheduled for delivery onto Comstock’s site this week and MCU will begin obtaining samples of possible mercury-contaminated soils, historic mine and mill materials, historic tailings, and mine waste samples using previously approved protocols for the Comstock's Carson River Mercury Superfund Site (CRMSS). The Company will operate under NDEP's and the EPA protocols, guidance and goals for sampling, characterizing, transporting and managing mercury within the CRMSS. The CRMSS Material Management Plan was previously approved by NDEP’s Bureau of Corrective Action (“BCA”).
Larger scale excavation of materials will start within a few months and the materials will be stockpiled near the Pilot Test Plant. The Pilot Test Plant will start operating small batches, likely in January, 2020. All material and process water from the MCU test plant will remain on the heap leach pad. All mercury recovered during testing will be collected into EPA, United Nations, Department of Transportation approved liquid mercury flasks or containers, and remain on the existing heap leach pad until shipped offsite to an appropriate mercury storage or management facility.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our focus on realigning and transforming the Company is accelerating. Our team has secured permits and we are mobilizing our drilling and sampling equipment to commence drilling and sampling. The platform is in place for developing a world-class, state of the art global mercury remediation system in 2020.”
http://www.globenewswire.com/news-release/2019/11/20/1949984/0/en/Comstock-Mining-Receives-Permit-Modification-Provides-Updates-on-Mercury-Remediation-Growth-Initiatives.html
Comstock Mining Closes on Lucerne Sale; Receives Cash and Stock From Tonogold
VIRGINIA CITY, Nev., Nov. 19, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or the “Company”) (NYSE American: LODE) today announced the closing of the sale of the Lucerne mine to Tonogold Resources Inc. (“Tonogold.”)
Comstock Mining LLC and Tonogold Closing
Comstock and Tonogold have closed the sale of the controlling interests of the entity that owns the Lucerne mine by consummating a transaction, originally agreed upon earlier this year, that values Lucerne at over $25 million ($11.5 million in cash, $5.8 million in stock and over $7.4 million in assumed liabilities), since Comstock also retains a 1.5% NSR royalty on Lucerne’s future production plus more than $2.2 million in subsidized, annualized savings.
The Company received $1.7 million in cash today plus $300k in convertible preferred stock (“CPS”), bringing total 2019, cash and stock payments to $11.725 million. Tonogold now has a 50% membership interest in Comstock Mining LLC, the entity that owns the Lucerne mine assets. The remaining $5.575 million in cash owed represents a secured obligation of Tonogold with monthly payments starting in November 2019, through June 2020. Once paid, Tonogold will own 100% of Comstock Mining LLC, the owner and operator of the permitted Lucerne mine.
Comstock and Tonogold also executed a Lease-Option agreement to use the Company’s American Flat processing facilities for processing mineralized materials from the Lucerne mine. To maintain the option, Tonogold will reimburse the Company for all expenses related to owning and maintaining the facility. Once exercised, Tonogold will pay $1 million per year and $1 per ton for processing mineralized material, in addition to paying all operating and processing expenses. As announced on September 23rd 2019, Tonogold has also been granted a renewable 10-year lease with rights to explore, develop and mine the Company’s mineral claims in Storey County.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Closing on the sale of Lucerne is a major milestone representing years of meaningful diligence and development, and now allows Tonogold to focus on the drilling and development of the Lucerne mine and Storey County mineral claims while Comstock turns its attention to developing our expansive, 100% owned mineral claims, specifically, the Dayton and Spring Valley exploration and development targets. Our debt is now down to $4.7 million, and declining every month.”
The Dayton resource area is the Company’s top wholly-owned exploration and development target. The Company is developing a new geological interpretation for an updated resource estimate. The new geological interpretation also drives a phased drilling program with higher potential for additional mineral resources that will be reported in a new, stand-alone technical report with a preliminary economic assessment (PEA) in the fourth quarter 2020.
Mr. De Gasperis, concluded, “The Lucerne sale has more than halved our debt and annual operating expenses. We are progressing the Dayton exploration and development plans, permitting our mercury remediation efforts and facilitating the sale of our non-mining assets in a manner that eliminates our debt and funds our growth.”
http://www.globenewswire.com/news-release/2019/11/19/1949282/0/en/Comstock-Mining-Closes-on-Lucerne-Sale-Receives-Cash-and-Stock-From-Tonogold.html
The pieces are finally falling into place. Should see an upward shift shortly. Been a long time coming. :)
What price would it take for you to no longer feel as though you’ve been cheated?
Comstock Mining Announces Third Quarter 2019 Results; Positive Q3 Net Income, Record Lowest Costs and Continued Debt Reduction
http://www.globenewswire.com/news-release/2019/10/29/1936861/0/en/Comstock-Mining-Announces-Third-Quarter-2019-Results-Positive-Q3-Net-Income-Record-Lowest-Costs-and-Continued-Debt-Reduction.html
Comstock Mining Announces Third Quarter 2019 Results; Positive Q3 Net Income, Record Lowest Costs and Continued Debt Reduction
http://www.globenewswire.com/news-release/2019/10/29/1936861/0/en/Comstock-Mining-Announces-Third-Quarter-2019-Results-Positive-Q3-Net-Income-Record-Lowest-Costs-and-Continued-Debt-Reduction.html
Comstock Mining Announces Notice of Third Quarter 2019 Results and Business Update Conference Call
VIRGINIA CITY, Nev., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Tuesday, October 29, 2019 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Third Quarter results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks. The dial-in telephone number for the live audio are as follows:
Toll Free: 1-800-367-2403
Conference ID: 2091975
The audio will be available, usually within 24 hours of the call, on the Company website:
ComstockMining.com/investors/investor-library
The Stategic Update immediately below is comprehensive and a worthy read for anyone wanting to know where we stand right now.
Comstock Mining Provides Strategic Update; Opportunity Zone Fund, Mercury Remediation and Lucerne Sale
October 01, 2019 06:45 ET | Source: Comstock Mining Inc.
photo-release
Comstock Mining’s Corporate Realignment
Comstock Mining’s Corporate Realignment
Comstock Mining’s Corporate Realignment
Comstock Mining Inc.
Sierra Springs Opportunity Zone Fund Inc. and Sierra Springs Enterprises Inc.
Sierra Springs Opportunity Zone Fund Inc. and Sierra Springs Enterprises Inc.
Sierra Springs Opportunity Zone Fund Inc. and Sierra Springs Enterprises Inc.
Comstock Mining Inc.
VIRGINIA CITY, Nev., Oct. 01, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Comstock” or “Comstock Mining”) (NYSE American: LODE) today announced selected strategic business updates.
Third Quarter 2019 Selected Strategic Highlights
Facilitated the launch of an independent, qualified opportunity zone fund, Sierra Springs Opportunity Fund Inc., whose wholly-owned qualified opportunity zone business, Sierra Springs Enterprises Inc., has:
° Secured Lyon County approval for acquiring the Silver Springs Regional Airport;
° Secured and escrowed new agreements for acquiring Comstock’s Non-mining Property;
° Secured and escrowed 150,000 square foot, state-of-the-art manufacturing and processing facility;
° Secured an Option on approximately 2,000 acres of land and 1,500 acre-feet of water rights;
° Secured high-quality, high pH (9.2+) water rights from Tahoe-sourced spring water; and
° Consolidated the aforementioned properties and water rights in a qualified opportunity zone.
Advanced Mercury Clean Up LLC, a mercury remediation, clean technology growth venture;
Amended the Lucerne sale agreement with Tonogold, with closing scheduled this month;
Leased the Occidental Lode and other mineral claim targets with near-term exploration plans; and
Hired Juan Carlos (“JC”) Giron, Jr., as President & CFO, accelerating the Company’s strategic plans.
During the first quarter of 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.
The Company advanced the Strategic Focus by facilitating the formation of a qualified opportunity zone fund named Sierra Springs Opportunity Fund Inc. and Sierra Springs Enterprises Inc., its qualified opportunity zone business. Sierra Springs Enterprises, Inc. has formally agreed to acquire Comstock’s non-mining assets and has also secured over a dozen independent projects, including the development of the Silver Springs Airport, a centrally located regional airport, the acquisition of certain exceptionally well located and adjacent lands and water rights, and the rights to a number of conservation-based, non-mining businesses. These businesses include a Tahoe-based, high pH spring water, an agricultural-ready manufacturing and processing facility and a business to manufacture and sell a totally compostable green bottle and cap, designed to displace single-use petroleum-based plastics.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our focus on realigning and transforming the Company is accelerating, especially with the addition of JC to our team. Our goal is to grow per-share value by commercializing environment-enhancing, precious-metal-based products and processes that generate predictable cash flow (throughput) and increase the long-term enterprise value of our platform. The formation of the Sierra Springs Opportunity Fund enables our goal by first facilitating the sale of our non-mining assets and then enabling a meaningful asset consolidation of ideally located and strategically positioned investments in Silver Springs.”
Comstock Mining’s Corporate Realignment
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fac8505e-ace9-464c-a319-f461d3f790c5
Sierra Springs Opportunity Zone Fund Inc. and Sierra Springs Enterprises Inc.
Last year, the U.S. Treasury confirmed that all of Storey County, NV, and significant parts of Silver Springs, NV, had been certified as Qualified Opportunity Zones. We are actively engaged in plans to enhance our mining and non-mining assets and core competencies in these locations, including an expanded land, water and technology portfolio, to maximize the value of our platform, first and foremost by selling our non-mining assets.
Sierra Springs Opportunity Fund Inc. was formed to capitalize on the extraordinary, explosive growth of high-tech industries in northern Nevada and its qualified zones and has already secured the rights to thousands of developable acres of land and more, 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 and its over 100 businesses.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4fc77477-1ce8-4aa0-a663-371e419adddd
Comstock will passively own approximately 9.5% of the Sierra Springs Opportunity Fund Inc. Mr. De Gasperis and a diverse team of qualified financial, capital markets, real estate and operational professionals will govern, lead and manage the fund, its investments and operations. The fund owns 100% of Sierra Springs Enterprises Inc., a qualified opportunity zone business (the “QOZ-B”), that has secured and consolidated the rights mentioned above, all located in northern Nevada. These properties are all ideally situated on the intersections of Highway 50, Interstate 95 and Interstate 80 with a recently connected “USA Parkway” that runs through the TRI Center, from Interstate 80 to Highway 50 in the immediate vicinity of Comstock’s properties and home to high-tech companies such as Google, Panasonic, Switch, Tesla, iJet, Walmart, Zulily and Blockchains LLC.
Comstock Processing LLC and Mercury Clean Up LLC
During 2019, Comstock and Comstock Processing LLC, the wholly-owned subsidiary that owns all of the property, plant, equipment and permits for the Crushing, Agglomerating, Leaching, Merrill Crowe Processing, Mercury Retort, Refining and Metallurgical operations located at 1200 American Flat, Virginia City, NV, entered into a definitive agreement with Mercury Clean Up LLC (“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, treat and remediate mercury from soils, waste and tailings.
MCU has the exclusive, world-wide rights to four patentable technologies and equipment that we believe will demonstrate feasible, economic mercury remediation. Comstock provides the platform for testing the mercury remediation system, and MCU will conduct the trials that prove scalable feasibility. MCU plans to deploy the solution globally and is working on at least one major, international remediation project. Comstock’s award-winning mercury reclamation experience coupled with MCU’s technology and processing know-how positions a new, global growth opportunity consistent with the Company’s Strategic Focus and cash-generating growth plans.
Comstock Exploration & Development (100% owner of Dayton Resource and Spring Valley Exploration Areas)
For the Dayton resource, Comstock previously discovered a newly recognized, mineralized, cross-cutting shear zone. An assay sample of the material identified three feet of 0.246 ounces per ton (OPT) gold and 3.553 OPT silver. Sampling was expanded and exposed another 90.8 feet of mineralized shear zone, beginning deep inside the Dayton adit. This overall sampling program identified precious metals averaging 0.043 OPT gold and 0.404 OPT silver for the entire zone, including 7.5 feet averaging 0.121 OPT gold and 0.753 OPT silver. The Company is proceeding to publish a separate NI 43-101 compliant, updated technical report for the Dayton resource that supports the subsequent scope of publishing a Preliminary Economic Assessment (“PEA”) for the Dayton project.
The Company is also continuing its exploration activities southerly into Spring Valley with plans for incremental exploration programs that include exploration and definition drilling of targets identified by geophysical surveys, surface mapping, prior drilling and deeper geological interpretations that together are expected to lead to publishing an updated, NI 43-101 compliant, mineral resource estimate for the Dayton Project and the expanded opportunities.
Comstock Northern Exploration LLC (Occidental Lode and Other Northern Target Mineral Claims)
Tonogold has commenced further analysis of our northern targets that we believe is extraordinary, correlating historical data with modern geological assessments and creating a larger exploration opportunity. Accordingly, the Company signed a new mineral lease with Tonogold that commits Tonogold to a minimum of $5 million towards the exploration of Comstock’s northern mineral claims and an additional minimum of $5 million for exploration and economic feasibility development, while eliminating the Company’s related maintenance costs and retaining the Company’s rights to a 1.5-3.0% NSR royalty. The Company believes this will accelerate the development of its northern targets and enhance the value of its mineral property portfolio and royalty package.
Comstock Mining LLC (100% owner of the Lucerne Resource Area)
Comstock’s collaborative efforts with Tonogold have evolved extensively during 2019, resulting in an enhanced sales agreement that immediately values Lucerne at more than $24 million ($11.5 million in cash, $4.75 million in stock and $8 million in assumed liabilities) plus a 1.5% NSR royalty on Lucerne’s future production while already delivering over $2 million in annualized savings. The Company’s recent agreements require additional cash payments at closing of $3.625 million, bringing total cash payments to over $7.5 million, providing Tonogold a majority membership interest of 50.3% in Comstock Mining LLC. The remaining $4.0 million in cash owed represents a secured obligation of Tonogold with scheduled monthly payments of at least $650 thousand each due starting in January 2020, through June 2020. Upon completion of such payments Tonogold will own 100% of Comstock Mining LLC. Comstock also terminated the previous option agreement, resulting in prior option payments of $2.2 million being recorded as income during the third quarter of 2019.
Outlook
The Company’s 2019 operating expenses were planned at over $4.0 million, but effective June 1, 2019, approximately $2.2 million of that amount, prospectively, is being reimbursed under the existing Tonogold agreement to purchase Lucerne, resulting in more than $1 million in additional, annualized savings for 2019.
The Company’s second half 2019, plans include advancing the commercialization of MCU’s mercury remediation processing technologies. Oro has commenced manufacturing the 2-to-25 ton per hour mercury recovery plant and recently completed the critical “Reverse-Helix Spiral Concentrator” component of the system. The entire system will be mounted on three separate trailers and will be set up on the Company’s fully contained, double-lined processing area during the fourth quarter with an expected start date in January 2020. During the fourth quarter, MCU will also identify sample locations within the Carson River Mercury Superfund Site (“CRMSS”) that will be sampled per an EPA-approved and updated Sampling and Analysis Plan (“SAP”). Once suitable sites have been identified, bulk samples will be extracted and transported to the MCU mercury remediation system located at the Company’s American Flat processing facility. MCU has also ordered the 200 gallon-per-minute dissolved air flotation (“DAF”) water treatment plant, also scheduled for delivery in December 2019.
The Company plans on commencing trial operations in January 2020 that reclaim and remediate its existing properties, enhance the values of, and potential economic feasibilities for, these properties and present new global growth opportunities in mercury remediation by demonstrating MCU’s technological effectiveness and efficiency.
During the fourth quarter of 2019, 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 in September 2019, with deposits currently in escrow. The Company also expects to close on the sale of 50.3% of the membership interest in Comstock Mining LLC, owner of the Lucerne properties, after receiving an additional $3.625 million in cash from Tonogold in October 2019. The agreement allows them to earn up to 100% of Comstock Mining LLC, after receiving an additional $4 million in installment payments in 2020.
The Dayton resource area will become the Company’s top wholly-owned exploration and mine development target. The Company is developing a completely new geological interpretation for a new resource estimate. The new geological interpretation is also being used to design phased drilling programs in with high-potential for additional mineral resources. Multiple layout plans for the mine and corresponding processing facilities have been conceptually developed and located on lands 100% privately held by the Company, thus simplifying and shortening the critical permitting chain. The Company plans to issue a new, stand-alone Dayton resource technical report, followed by a preliminary economic assessment in the fourth quarter 2020.
Mr. Corrado De Gasperis, concluded, “The benefits and value of the Sierra Springs Opportunity Fund, Sierra Springs Enterprises, MCU, Dayton, Spring Valley, Tonogold and all of our strategic ventures will be showcased during our annual meeting, scheduled for November 12, 2019, at the Gold Hill Hotel in Gold Hill, Nevada. We look forward to overviewing our strategy and introducing our shareholders to our partners and other stakeholders.”
I’m willing to bet that we hear about Silver Springs long before Daney. Perhaps this year. A PR or two about how we’ve successfully reprocessed several hundred tons of tailings with the new patent pending equipment would be useful as well.
Comstock Mining Schedules Lucerne Closing for October 15; Non-Refundable Payments of Over $8.67 million Paid-To-Date
September 23, 2019 06:45 ET | Source: Comstock Mining Inc.
VIRGINIA CITY, Nev., Sept. 23, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or “Comstock Mining”) (NYSE American: LODE) announced today that Tonogold Resources, Inc. (“Tonogold”) has agreed to a closing date of October 15, 2019, on the sale of Lucerne and delivered non-refundable stock-based fees totaling $830 thousand that have been paid timely. Tonogold also recently paid $575 thousand in non-refundable cash deposits bringing total cash deposits to $3.925 million plus $3.50 million in non-refundable Convertible Preferred Stock (“CPS”), for a grand total of $7.425 million in cash and stock paid toward the purchase price. Comstock has also received additional stock fees of $1.25 million, bringing total non-refundable payments to $8.675 million. Comstock currently holds $4.75 million in CPS, convertible at the lowest of Tonogold’s (1) 20-day volume-weighted closing price prior to conversion, (2) most recent private placement or (3) public offering price.
So far in September, Tonogold has also paid approximately $450 thousand in reimbursements directly to Comstock Mining, in addition to over $350 thousand from the second quarter, primarily for permitting, development activities and interest expense reimbursements. Tonogold is current on all payment obligations and the non-refundable purchase price payments have reduced Comstock’s Debenture to under $6.1 million.
Under the agreement, Comstock will sell the membership interest in Comstock Mining LLC to Tonogold for $15 million plus the assumption of certain liabilities and a retained 1.5% NSR royalty on Lucerne. The amended purchase agreement allows Tonogold to close by October 15, 2019, with an additional cash payment at closing of at least $3.625 million. This results in total cash payments at closing of $7.55 million for a 50.3% ownership. The remaining cash purchase price of $3.95 million will be held as a secured obligation with monthly scheduled payments of at least $650 thousand, between January 2020, and June 2020. Once the final payment is made, Tonogold would then own 100% of Comstock Mining LLC, the owner of Lucerne assets and its mining permits.
Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “Tonogold has completed some extraordinary analysis of the northern District, innovatively correlating historical data with modern geological assessments, and creating a larger exploration opportunity while recently assembling an impressive list of resource investors that has enhanced their liquidity and capital base. We look forward to this closing and accelerating our growth.”
Effective September 16, 2019, the Company also entered into a ten-year, renewable Mineral Lease for its other Storey County mineral properties, granting Tonogold the right to explore, develop and mine these properties. This arrangement was part of the original agreement entered into in January, 2019, but has been accelerated as Tonogold has committed to exploration expenditures of at least $5 million in the first, ten-year term, with the right to extend for a second, ten-year term if they commit to another $5 million and delivering a feasibility report. The lease requires quarterly lease payments with a 3% royalty that adjusts to 1.5% after the first year of mining.
The previous “earn-in” agreement with Tonogold, signed in October 2017, was terminated effective September 18, 2019, and the associated option payments of $2.2 million were recorded as income in the third quarter.
Comstock Mining Schedules Lucerne Closing for October 15; Non-Refundable Payments of Over $8.67 million Paid-To-Date
September 23, 2019 06:45 ET | Source: Comstock Mining Inc.
VIRGINIA CITY, Nev., Sept. 23, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or “Comstock Mining”) (NYSE American: LODE) announced today that Tonogold Resources, Inc. (“Tonogold”) has agreed to a closing date of October 15, 2019, on the sale of Lucerne and delivered non-refundable stock-based fees totaling $830 thousand that have been paid timely. Tonogold also recently paid $575 thousand in non-refundable cash deposits bringing total cash deposits to $3.925 million plus $3.50 million in non-refundable Convertible Preferred Stock (“CPS”), for a grand total of $7.425 million in cash and stock paid toward the purchase price. Comstock has also received additional stock fees of $1.25 million, bringing total non-refundable payments to $8.675 million. Comstock currently holds $4.75 million in CPS, convertible at the lowest of Tonogold’s (1) 20-day volume-weighted closing price prior to conversion, (2) most recent private placement or (3) public offering price.
So far in September, Tonogold has also paid approximately $450 thousand in reimbursements directly to Comstock Mining, in addition to over $350 thousand from the second quarter, primarily for permitting, development activities and interest expense reimbursements. Tonogold is current on all payment obligations and the non-refundable purchase price payments have reduced Comstock’s Debenture to under $6.1 million.
Under the agreement, Comstock will sell the membership interest in Comstock Mining LLC to Tonogold for $15 million plus the assumption of certain liabilities and a retained 1.5% NSR royalty on Lucerne. The amended purchase agreement allows Tonogold to close by October 15, 2019, with an additional cash payment at closing of at least $3.625 million. This results in total cash payments at closing of $7.55 million for a 50.3% ownership. The remaining cash purchase price of $3.95 million will be held as a secured obligation with monthly scheduled payments of at least $650 thousand, between January 2020, and June 2020. Once the final payment is made, Tonogold would then own 100% of Comstock Mining LLC, the owner of Lucerne assets and its mining permits.
Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “Tonogold has completed some extraordinary analysis of the northern District, innovatively correlating historical data with modern geological assessments, and creating a larger exploration opportunity while recently assembling an impressive list of resource investors that has enhanced their liquidity and capital base. We look forward to this closing and accelerating our growth.”
Effective September 16, 2019, the Company also entered into a ten-year, renewable Mineral Lease for its other Storey County mineral properties, granting Tonogold the right to explore, develop and mine these properties. This arrangement was part of the original agreement entered into in January, 2019, but has been accelerated as Tonogold has committed to exploration expenditures of at least $5 million in the first, ten-year term, with the right to extend for a second, ten-year term if they commit to another $5 million and delivering a feasibility report. The lease requires quarterly lease payments with a 3% royalty that adjusts to 1.5% after the first year of mining.
The previous “earn-in” agreement with Tonogold, signed in October 2017, was terminated effective September 18, 2019, and the associated option payments of $2.2 million were recorded as income in the third quarter.
My reference is to TNGLs endeavor. Do you think their 6mil outlay so far is foolish because there is nothing to be had?
It would appear there is a lot riding on that narrative. Or is the endeavor foolish?
Or they are done and you have a half dozen guys standing around swinging in the wind and asking what do we do now. Answer might be obvious but we’ll see.
...which requires cash. Want to hear where we stand on the Lucerne 43-101 and when an IPO can be expected. Then hire the miners.
Hopefully TNGL is actually mining before that $1700 pog happens. Any thoughts on that possibility? How about an updated timeline?
Comstock Mining Advances Lucerne Sale Towards Near-Term Closing; Total Non-Refundable Deposits Exceed $7.7 Million
8/14/19, 3:29 PM
VIRGINIA CITY, Nev., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or “the Company”) (NYSE American: LODE) announced today that Tonogold Resources, Inc. (“Tonogold”) has elected to extend the closing date on the sale of the Lucerne properties until August 30, 2019, by remitting a non-refundable cash deposit of $875,000. Under the January 2019 agreement, Comstock is selling the membership interest in Comstock Mining LLC to Tonogold for $15 million, plus the assumption of certain liabilities and a retained 1.5% NSR royalty on Lucerne. The extension brings total cash deposits through August to $4.225 million, all toward the agreed purchase price. The Company has also received $3.5 million in convertible preferred stock (“CPS”), for total pre-close payments of $7.725 million, all applicable to the purchase price, plus fees totaling an additional $1 million in stock.
The Company and Tonogold have also amended the purchase agreement, effective August 15, 2019, allowing Tonogold to close by August 30, 2019, with a majority membership interest of at least 50.3% in Comstock Mining LLC, and an additional cash payment at closing of at least $3.315 million, bringing the total cash payments for closing to $7.54 million. The remaining $4.0 million will be held as a secured obligation with scheduled monthly payments of not less than $500 thousand each, between November 2019, and May 2020. Once the final payment is made, Tonogold will then own 100% of the membership interests Comstock Mining LLC, owner of Lucerne. The prior “earn-in” option agreement between Comstock and Tonogold, signed in October 2017, is terminated as a result of this amendment and the prior payments of $2.2 million becomes income in August 2019.
The amendment also results in a fee of $580 thousand in Tonogold Convertible Preferred Stock (CPS), due by August 30, 2019, in addition to the $420 thousand fee in CPS previously paid on May 31, 2019, neither applying to the purchase price. All $4.5 million of the CPS is convertible on May 22, 2020, at a conversion price representing the lowest of (1) the 20-day volume weighted closing price of Tonogold shares prior to conversion, (2) Tonogold’s most recent private placement or (3) Tonogold’s public offering price. The amendment gives Tonogold an option to extend the closing to September 30, 2019, by paying an additional $250 thousand in CPS.
The Company previously agreed that, upon the closing of the sale of the Tonogold transaction, it will enter into an option to lease the permitted American Flat property, plant and equipment to Tonogold for crushing, leaching and processing. Upon closing, the Company will also enter into a ten-year Mineral Lease for all additional mineral properties in Storey County, granting Tonogold the right to explore, develop and mine these properties.
Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “The total cash payments at closing of $7.525 million transfers the majority interest in the entity that owns Lucerne to Tonogold with a clear and expedited path for acquiring the full 100%. The closing will immediately reduce our debt to approximately $2.5 million. This deal is getting done in the very near-term and the remaining Tonogold payments (approximately $4 million) eliminates our debt and brings significant free cash to accelerate new revenue growth.”
ER and CC Thurs. Aug. 15
VIRGINIA CITY, Nev., Aug. 08, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Thursday, August 15, 2019 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Second Quarter results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks. The dial-in telephone number for the live audio are as follows:
Toll Free: 1-800-263-0877
Conference ID: 1232689
In the past, the co has always PRd the ER and CC before it happens. Look for the PR instead of any published dates.
Reasonable assesment
It’s time to get something (anything) that’s on the stove, onto the table. JMO.
Very hard indeed
Comstock Mining Advances Realignment; Approves Joint Venture
https://finance.yahoo.com/news/comstock-mining-advances-realignment-approves-125607177.html
Almost there.
Audio of Q1 conference call. Give it a spin.
https://www.comstockmining.com/images/stories/audio/8058709.mp3
Not only do we get paid for lucerne we also get a per ton processing percentage of what they mine. Not a bad deal. Looks like things are finally starting to turn around for us.
This ITRO PR also hints at some additional income headed our way as well. Let’s get things moving on dayton. Looking forward to the 43-101.
Comstock Announces Solid Progress on Lucerne Transaction; Tonogold Commits Additional $1 million in Non-Refundable Deposits
May 06, 2019 06:45 ET | Source: Comstock Mining Inc.
VIRGINIA CITY, Nev., May 06, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock” or “the Company”) (NYSE American: LODE) today announced significant progress toward the completion of the sale of its Lucerne properties (“Lucerne”).
The Company understands that Tonogold Resources, Inc. (“Tonogold”) has secured significant interest for funding the Lucerne purchase and is finalizing negotiations of optimal terms and allocations. Tonogold also recently executed a Term Sheet with Nebari Holdings, LLC (“Nebari”) for a $5 million, debt financing with the option for drawing an additional $25 million for development, production start-up and working capital, subject to customary due diligence and closing conditions. Nebari is Comstock’s current lender.
Mr. Mark Ashley, President and CEO of Tonogold stated, “Our diligence is paying off with the assembly of an outstanding group of strategic resource investors who understand the significance of the gold and silver resource at Lucerne and the greater exploration potential of the whole northern portion of the Comstock District. We look forward to accelerating and consummating the transaction announced with Comstock in January 2019, in the next few months.”
Tonogold has also committed and partially funded another $1 million in non-refundable deposits. For the year-to-date, Comstock has received $2,350,000 in cash as non-refundable payments, including $350,000 recently, toward the aggregate purchase price, with an additional $450,000 and $200,000 due on or prior to May 17, and May 24, 2019, respectively. These payments extend the deadline for closing the transaction to June 21, 2019. Comstock has received $350,000 and will use seventy-percent of the entire $1 million in payments to pay down its outstanding debenture, bringing the outstanding principal down to approximately $6.7 million.
Accordingly, both parties have reached an agreement to provide additional extension opportunities for closing on Lucerne, primarily to allow for a more thorough and efficient financing and closing process. Comstock agreed to provide Tonogold with the flexibility to close on Lucerne on or prior to August 30, 2019, subject to making additional $1 million monthly non-refundable deposits in late June 2019 and late July 2019, if needed. If the closing occurs after the original deadline of May 31, 2019, Tonogold will also reimburse Comstock for all incremental interest costs and substantially all property carrying costs, as previously agreed.
Comstock now anticipates, and the amendment allows for, Tonogold to deliver $11.5 million in cash at closing, less the amounts of the cumulative non-refundable payments made by Tonogold at that time, and a one-year maturing, interest bearing note converting into shares in Tonogold if not repaid previously, to Comstock with a principal amount of $3,500,000. The conversion price will be the lowest of (1) the 20-day volume weighted closing price of Tonogold shares prior to conversion, (2) Tonogold’s most recent private placement or (3) Tonogold’s initial public offering price.
Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “Tonogold has made consistent progress toward acquiring the Lucerne mine and has worked effectively to secure sufficient strategic investment capital for closing this transaction and funding Lucerne development. The effort and results are both outstanding and we look forward to closing the Lucerne transaction in the next few months.”
http://www.globenewswire.com/news-release/2019/05/06/1817285/0/en/Comstock-Announces-Solid-Progress-on-Lucerne-Transaction-Tonogold-Commits-Additional-1-million-in-Non-Refundable-Deposits.html
You guys having an IPO?
Comstock Mining Announces Notice of First Quarter 2019 Results and Business Update Conference Call
May 02, 2019 06:45 ET | Source: Comstock Mining Inc.
VIRGINIA CITY, Nev., May 02, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Thursday, May 9, 2019 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: 1-888-241-0551
International Direct: 1-647-427-3415
Conference ID: 8058709
The audio will be available, usually within 24 hours of the call, on the Company website:
ComstockMining.com/investors/investor-library
http://www.globenewswire.com/news-release/2019/05/02/1815083/0/en/Comstock-Mining-Announces-Notice-of-First-Quarter-2019-Results-and-Business-Update-Conference-Call.html
Potential upcoming news for LODE:
1. Additional $1 mil payment from TNGL
2. 43-101 and PEA for Dayton Mine
3. 43-101 for Lucerne Mine and announcement of TNGL tsxv IPO
4. The actual IPO
5. The purchase of Lucerne Mine by TNGL
6. COMPLIANCE
7. Sale of Silver Springs, NV property
(not necessarily in order)
If I missed something, please add.
I dont know about you but I’m enjoying the hell out of this!!
Up 8% today on low vol...
Extension granted and airport sale signed agreement!!
VIRGINIA CITY, Nev., Feb. 26, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced it has formally signed agreements to sell the Company’s non-mining assets in Silver Springs, Nevada. These non-mining assets include the Company’s 98-acre certified industrial site and related senior water rights and the purchase agreements and options on the 160 acres of land and water and sewer rights for a total of $9.75 million. As part of the agreements, the Company retains a 3% future profit sharing interest on the resale of these assets. The sales are expected to close between March and September 2019. The Company expects to record a gain of approximately $5 million.
Corrado De Gasperis, Executive Chairman and CEO said, “With the explosive growth in the nearby Tahoe Reno Industrial Center, our non-mining assets are in an ideal location for a developer to capitalize on and grow into this region.”
The Company’s Board has also determined, consistent with the sale of these non-mining assets, it is in the best interests of the Company and its shareholders to implement a strategy that is solely focused on high-value, high cash-generating, precious metal-based activities, including, but not limited to, metals and mining and related supply chain ventures and acquisitions, mineral exploration, engineering, resource development, economic mineral production, metal refining and environmentally-friendly, conservation-based, economically enhancing mining technologies and related processes.
Mr. De Gasperis, continued, “We are leveraging our mining platform and multiple-tax efficient positions to deliver superior returns. Consistent with our strategic focus, the Board has approved the formation of a precious metal and mining focused, Comstock-based opportunity zone fund, creating an investment vehicle to tax-efficiently partner with the Company for the exploitation of precious-metal based opportunities in Nevada-based or other qualified opportunity zones.”
On August 27, 2018, the Company received notification from the NYSE American LLC that the Company’s securities had been selling at or below $0.20 per share and the Company would have six months to cure the minimum price compliance requirement. The Company recently received notification from the NYSE American LLC (“NYSE”) that the Company has been granted an extension to May 31, 2019, to regain compliance with the NYSE continued listing standards. The Company believes its business strategy and plans for 2019, including closing on the previously announced transactions, will be sufficient for regaining compliant share price levels. Otherwise, the Company would effect a reverse stock split to regain minimum price levels. With the recent extension, the Company’s continued listing is predicated on demonstrating sustained price improvement no later than May 31, 2019.
Mr. De Gasperis concluded, “We are delighted by the support and extension from the NYSE. With our recently announced strategic partnerships and agreements to monetize our non-mining assets, we believe we will regain price compliance as a matter of due course. The NYSE represents the highest standard in quality, compliance and reputation, and we highly value the liquidity and protections it provides our shareholders and we do not see that relationship changing, now or in the future.”
The NYSE American notification does not affect the Company’s business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company’s material agreements. The Company’s common stock continues to trade under the symbol “LODE” with an added designation of “.BC” to indicate that the Company is below compliance with the NYSE American LLC’s listing standard.
43-101 on lucerne and tsxv IPO will tell
Tonogold Resources to Acquire 100% of the Lucerne Gold deposit and expands its position on the Comstock Lode (Virginia City, Nevada)
LA JOLLA, CA / ACCESSWIRE / January 28, 2019 / TONOGOLD RESOURCES INC. (OTC PINK: TNGL) ("Tonogold") is pleased to announce that it has today entered into a comprehensive and binding agreement ("New Agreement") with Comstock Mining Inc ("Comstock") which, on completion will provide Tonogold with, amongst other matters, 100% of the Lucerne project (including the Lucerne gold/silver deposit) in Storey County, Nevada.
This New Agreement leverages off the agreement entered into in October 2017, under which Tonogold had the right to earn a 51% interest in the Lucerne gold project by investing $20 million into the project over 42-months beginning October 2017. The October 2017, agreement will be superseded by the New Agreement once completion has occurred.
Tonogold will now be seeking a listing on the Toronto Venture Exchange (TSXV) by way of an IPO to coincide with a capital raising in order to provide the funding to complete this acquisition and to fund the advancement of the project over the next 12-months. Further details in this respect (timing, IPO terms, participation rights of current Tonogold shareholders, etc) will be advised to the market in due course.
Under the New Agreement, Tonogold will pay Comstock $15 million, of which a non-refundable deposit of $1 million was paid on January 23rd 2019 (on signing the New Agreement), with the remaining $14 million payable, at Tonogold's election, by either:
$9 million cash on Completion plus $5 million cash 12-months from Completion, or
$10.5 million cash plus $1.75 million in Tonogold shares (at the IPO price) at Completion plus $1.75 million in cash or, at Tonogold's election, Tonogold shares 12-months from Completion at the weighted average share price at that time.
Under alternative 1 above, Comstock will be granted security in respect of the $5 million deferred payment. Under alternative 2, Comstock will not have any security interest, thus providing Tonogold the flexibility to arrange a third-party debt facility to support the TSXV equity raising.
Completion of the transaction will occur once Tonogold has formally secured the funding required. Under the New Agreement, Completion is scheduled for March 31st 2019, although Tonogold has the right to extend this date to April 30th 2019 by paying Comstock a further $1 million deposit and again to May 31st 2019 for another $1 million. In both cases the additional deposits shall be applied in full to the cash payment due on Completion.
In addition, Comstock will be granted a Net Smelter Return Royalty of 1.5% over future production from Lucerne.
EXPANDED LAND POSITION
Under the October 2017 agreement, Tonogold's right to acquire 51% of the Lucerne project comprised some 1,200 acres of mining claims within Storey County. The New Agreement provides Tonogold 100% control over the 1,200 acres being the Lucerne project plus 100% exploration, development and mining rights (via a lease arrangement) over Comstock's remaining mining claims in Storey County (totaling just over 2,800 acres) ("Tonogold's Expanded Land Position"), which cover major areas of the highly significant past Comstock Lode producers to the north of Lucerne, including the Belcher deposit which operated between 1863 and 1916 (1.9 million ounce AuE producer), Crown Point (1.8 million AuE ounces), Consolidated Imperial (1.1 million AuE ounces). A more comprehensive list is provided under the heading "The Comstock Lode - History" section below.
The provisions in respect of Tonogold's Expanded Land Position of the New Agreement enables Tonogold to initiate and roll-out a significant new leg to its regional strategy, which will be the focus of a systematic and aggressive exploration program commencing as soon as possible. The results of this program are expected to substantially change (improve) the already significant value accretive nature of our acquiring 100% of Lucerne.
Comstock will be granted a Net Smelter Return royalty of 3% from production from the Tonogold Expanded Land Position Area, reducing to 1.5% after the first year of production.
Further details of Tonogold's Expanded Land Position strategy are outlined below under the heading "The Comstock Lode - History".
ACCESS TO AND USE OF THE PROCESS FACILITIES
Under the October 2017 agreement, Tonogold had an option to acquire a 51% interest in the process facility, plant, infrastructure and 983 acres of mining claims to the west of Lucerne (known as the American Flats properties) by paying Comstock $25 million. An alternative arrangement was negotiated and agreed between Comstock and Tonogold and announced to the market in April 2018, which provided Tonogold the right to use the American Flats property for a fee of $1 per ton of material treated plus $1 million per annum.
Under the New Agreement, Comstock shall retain ownership of the American Flats Property but provides Tonogold an option for exclusive operating rights via a 20-year lease to use, operate and manage the American Flats properties, with Tonogold paying Comstock $1 per ton of material treated (variable rate) plus $1 million per annum (fixed rate) commencing once a production decision is made, but with the following adjustments:
The variable rate shall reduce to $0.50 per ton once the cumulative payments (both fixed and variable) made to Comstock under this arrangement have reached $15 million
The variable rate shall reduce to $0.25 per ton once the cumulative payments (both fixed and variable) made to Comstock under this arrangement have reached $25 million (but with a minimum payment of $100,000 per quarter)
The fixed rate of $1 million pa shall be terminated once the cumulative payments (both fixed and variable) made to Comstock under this arrangement have reached $25 million
HOLDING COSTS
Tonogold shall be responsible for meeting (or continuing to meet) the carrying costs (lease costs, permits, insurance, annual claim fees, property tax, etc.) associated with the areas covered by the New Agreement, including:
The Lucerne Project - $1 million pa
The American Flats Property $1 million pa, and
The Expanded Storey County Claims - $0.1 million pa (new commitment)
The total holding costs to be met by Tonogold pursuant to the New Agreement is estimated at $2.1 million per year, of which over $1 million per year having been Tonogold's responsibility since the October 2017 agreement.
STRUCTURE
The New Agreement provides for Tonogold acquiring a 100% ownership in Comstock Mining LLC (currently a wholly owned subsidiary of Comstock), which owns the mining claims as well as the various permits required to operate, including the Storey County Special Use Permit for mining and processing that was recently extended until 2034.
LUCERNE UPDATE
Mine Development Associates ("MDA"), of Reno, Nevada are in the final stages of completing an updated 43-101 Resource Estimate for Lucerne, which follows Canadian Institute of Mining guidelines and will be reported in a Canadian NI 43-101 Technical Report. That updated report will form the foundation from which to launch Tonogold's previously stated target of securing production of around 80,000 ounces of gold per annum generating around $50 to $60 million of operating cash flow for an initial 4 to 5 years commencing in approximately 2-years.
THE COMSTOCK LODE - HISTORY
The discovery of major gold and silver deposits near Virginia City in 1859, resulted in the highest and most valuable concentration of precious metals ever established over a two- square mile area anywhere on the planet at that time. This area is known as the Comstock Lode.
Most of the 8 million ounces of gold and 200 million ounces of silver produced from the Comstock Lode, occurred during the 20-year period 1860 through 1880. It is reported that the best individual year was 1877 when some 740,000 ounces of gold and 20 million ounces of silver were produced.
Over 80% of the historic production came from 20 deposits (which recovered ~6.9 million ounces of gold and 173 million ounces of silver (11.3 million ounces of gold equivalent) from 7.8 million tonnes of ore (27 g/t gold plus 690 g/t silver or ~45 g/t AuE). See Table 1 below.
The table below provides details of some of the more significant production contributors from the Comstock Lode since 1859, all, with the exception of the Ophir Mine, of which are covered by Tonogold's Expanded Land Position.
* The area of the Ophir Mine is not part of Tonogold's Expanded Land Position
As a result of the low prices for precious metals during the mid to late 180's (gold ($19/oz) and silver ($0.50/oz)), profitable operations required a minimum grade of around 30 g/t of gold (or gold equivalent) to merely cover the cost of operations, estimated at that time to have been around $20 per ton.
As a result of the low prices for precious metals during the mid to late 1800's (gold ($19/oz) and silver ($0.50/oz)), profitable operations required a minimum grade of around 30 g/t of gold (or gold equivalent) to merely cover the cost of operations, estimated at that time to have been around $20 per ton.
At grades averaging up to 66 g/t AuE (1.9 ounces of AuE per ton), revenue of up to $36 per ton and costs of around $20 per ton, provided good margins during the second half of the 1800's. However, those margins were eroded as the negative impact of inflation on costs were not compensated by a corresponding increase in the gold price (the result of the gold price being "fixed" to the US dollar (the "gold standard") throughout this period), which would have forced the closure of many of the mines during the early 1900's.
Only when the gold standard was abolished by President Nixon in the early 1970's and the gold price was allowed to float, has its value improved, such that the current price ($1,250/oz) it is some 2.4 times higher today than the CPI adjusted price in 1860 ($530/oz).
In addition, significant technological advancements in mining and metal extraction have seen costs reduce by at least 200% in real terms since 1860.
The combination of macro-economic factors highlighted above, coupled with the regions proven world class endowment, and securing 100% rights over the significant and contiguous landholding that the New Agreement provides, results in an unprecedented opportunity for Tonogold to quickly and substantially increase the resource base.
In this regard, Tonogold's initial exploration strategy at Comstock will be to:
Assess those deposits regarded as too low grade at that time (for example Occidental, Justice, etc.) who's workings are regarded to have been more exploratory than productive to determine whether higher grades along the deposit and down dip would improve. These deposits offer an excellent opportunity for what is today regarded as high-grade discoveries which have been virtually untouched by historic mining activities.
Test the magnitude and continuity of the ore that the old timers left behind (as waste – i.e. less than ~20 g/t) that would be regarded as economic today,
To test the potential for both depth (down-dip) and lateral extensions of the bonanza grade structures that the old timers may not have realized existed due to lack of modernday exploration methods, equipment, techniques and geological understanding.
Assess and transact commercial opportunities to further consolidate our landholding in the region.
A drill program is planned to commence as soon as possible.
DURANGO
Tonogold has determined that the exploration opportunities available from the New Agreement are significantly better than those of the three exploration projects in Durango, Mexico that Tonogold had optioned. As a result, Tonogold has decided not to exercise the option over these assets but instead to focus our resources on exploration in and around Lucerne and the Comstock Lode.
FOR FURTHER INFORMATION PLEASE CONTACT
Mark Ashley (CEO Tonogold Resources Inc)
E: mjashley3@gmail.com
T: 858 456 1273
(Table 1 deleted for post. See link below.)
http://www.digitaljournal.com/pr/4129105?noredir=1
Comstock Mining (LODE) Reports Sale of Lucerne Mine to Tonogold Resources, Inc.
January 28, 2019 6:49 AM
Comstock Mining Inc. (NYSE: LODE) announced today that it has entered into a definitive agreement, and received a $1 million non-refundable payment toward the sale of its Lucerne properties (~1200 acres) to Tonogold Resources, Inc. for $15 million in cash, relief of $8 million in future lease and reclamation obligations, a permanent reduction of annual operating expenses by $1 million, and a retained 1.5% net smelter return royalty on the Lucerne properties. The company will transfer the ownership or control of the Lucerne properties and related permits, including the Storey County Special Use Permit for mining and processing that was recently extended to 2034. The Company retains ownership and/or control of the remaining land position in the Comstock district, including but not limited to the Dayton, Spring Valley and the American Flat properties. The Company expects the transaction to close between March and May of this year.
The Company and Tonogold also agreed that, upon the closing of the sale of the Lucerne mine properties, it will enter into a new Option Agreement to lease its permitted American Flat property, plant and equipment to Tonogold for crushing, leaching and processing material from the Lucerne mine. If the option is exercised, Tonogold will pay the Company a rental fee of $1 million per year plus $1 per processed ton, in addition to all the costs of operating and maintaining the facility, up to and until the first $15 million in rental fees are paid, and then stepping down to $1 million per year and $0.50 per processed ton for the next $10 million paid to Comstock, with more favorable rates after the first $25 million of revenue is received. Tonogold will reimburse American Flat expenses during the option life.
Strategic Partnership and Sale Highlights
Provides a minimum of $10 million in cash to the Company in early 2019, eliminating debt;
Provides $5 million in cash to the Company in early 2020, accelerating Dayton developments;
Relieves $8 million in obligations, primarily for the Northern Comstock (NCJV) obligations;
Grants Tonogold an option to lease the American Flat property and equipment for:
$1 million per annum, plus $1 per ton for the first $15 million;
$1 million per annum, plus $0.50 per ton for the next $10 million ($25 million total); and
$0.25 per ton for all tons processed over $25 million in revenue.
Subsidizes $1.1 million per annum in American Flat related expense;
Retains a 1.5% Lucerne net smelter royalty; and
Eliminates our Debenture obligation and over $1 million in related, annual interest costs.
Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “These agreements deliver $15 million in cash, eliminate our debenture and related annual interest, relieve us of the NCJV liability and permanently reduces our annual operating expenses by $2.2 million and annual interest costs by over $1 million. These transactions position Lucerne and our partner, Tonogold, with a tremendous platform for developing and delivering mine production. The most immediate value is almost $25 million between cash, NCJV relief, and expense reduction while retaining significant rental and royalty potential.”
Upon closing, these agreements will replace the October 2017 Option agreement between the Company and Tonogold that allowed Tonogold to earn a 51% interest in the Lucerne properties through its initial payments of $2.2 million in cash and current and future spending commitments totaling $20 million for exploration, engineering, permitting, and development. The October 2017 agreement will remain in place until the sale of the Lucerne mine closes. Tonogold has met all of the spending commitments to date and has been working with Mine Development Associates (“MDA”) of Reno to produce a new resource model and a 43-101 technical report on the Lucerne project.
Upon closing, the Company will also enter into a ten-year Mineral Lease for additional mineral properties in Storey County, Nevada, granting Tonogold the right to explore, develop and mine these properties. Tonogold will assume approximately $100 thousand in annual costs for these properties and will assume work commitments totaling over $200 thousand in 2019. Comstock will retain a 3% net smelter return royalty on these additional leased properties, which will be reduced to 1.5% one year after the commencement of mining operations. The lease is renewable for an additional ten-year term.
Mr. De Gasperis added, “We have accelerated the potential exploration and development of the northern Comstock District targets, including the Occidental Lode, Yellow Jacket, Kentuck, and other historic, high-grade bonanza targets, with a retained royalty that aligns us financially and strategically, and enables drilling and development along the entire length of the Comstock Lode, from the northern bonanzas to the southernmost exploration targets.”
Ownership or control of the Lucerne properties will transfer to Tonogold when Tonogold has paid the Company a total of $10 million in cash by closing, required on or before May 30, 2019. Tonogold will pay an additional $5 million by the first anniversary of the closing date. The $5 million payment will be secured by a deed of trust on the Lucerne properties. Alternatively, Tonogold has the option to pay a total of $11.5 million in cash and $1.75 million in stock by closing, with another $1.75 million payable in cash or stock by the first anniversary of the closing.
Tonogold is a U.S.-based mining company that is focused on advanced exploration properties in Nevada and Mexico. Tonogold’s team of mining executives and investors are building a portfolio of mineral properties that will give its investors a leveraged exposure to gold, silver and other minerals and metals.
Mr. Mark Ashley, CEO of Tonogold, commented, “Comstock Mining has done an excellent job consolidating a historic, world-class mining district and then entitling it for productive development. This transaction provides an opportunity to own 100% of a known, permitted resource, and develop a significant, profitable and sustainable operation within the next three years. We expect to publish our NI 43-101 compliant technical report this quarter.”
Mr. De Gasperis concluded, “We are impressed with Tonogold’s diligence and ongoing mine development activities and have committed our experienced, technical team in support of their success. Tonogold becomes a stronger, more strategic mining partner with the wherewithal to advance Lucerne back into production. This agreement delivers immediate value for our shareholders, with potentially significant rental and royalty income. The agreement also simultaneously enables an aggressive northern region exploration program, while we fully focus on our southern, 100% owned Dayton and Spring Valley projects.”
Agreed. Cross posting PRs is fine as long as they include direct refrences to LODE, otherwise they will be deleted as off topic.