Comstock Inc (LODE)

[resourceinvest]

I have looked at the American Tunneling deal recently announced (the actual agreement has been filed on SEDAR). Let's be clear, this does not represent a $5 million credit yet (shares still have yet to be issued). Comstock Shares are issued and a credit established from time to time (when Comstock need work done). The number of shares to be issued (representing the amount of credit) requires the price of the shares to be agreed by both parties at that time. The 56c that everyone is referring to, is part of some protective measures for Comstock that prohibit AT from selling those shares at less than 56c, which, in any event cannot be sold for at least 6-months. The protective measures however ensure that this "share for services" deal sits on the shelf doing nothing unless the sp goes above 56c and then only if AT believe the shares will stay above 56c. Unfortunately the protection built into the arrangement also acts as a barrier for it being consummated.