Comstock Inc (LODE)

[saildone]

In two months TNGL will either pay LODE two million or decide that it is not something they are going to pursue. At the moment they have day to day operating control which will continue if they extend the option. TNGL has contracted Mine Development Associates of Reno (MDA) to establish a reserve rather than relying on CMI's overly optimistic estimates.

If they extend; they will have to invest twenty million. Seven Million in the first eighteen months after extending and thirteen million in the following eighteen months. For this they will get a fifty one percent controlling interest on the Lucerne project and the companies will continue as a joint venture. TNGL would subsidize CMI at 1.2 million a year.

They also have an option to acquire a 51% controlling interest on the American Flat plant and equipment for another twenty five million payable over an eighteen month period after exercising the option.

They have the right of first refusal on the Dayton project. But the dollar amount and details are yet to be released.

They've laid out another $100,000 for a six month look at a property in Mexico and obligated for another 100K if they choose to keep looking three months longer. If they like what they see; they'll buy it for 7.3 million.

So where are they getting this money? It is not on their books. CDG said he met their investors, so there seems to be money backing them up. They have nearly 105 million shares of common stock outstanding out of 200 million authorized and are authorized to issue forty million shares of preferred stock none of which has been issued so far.

TNGL started out with Point Loma Partners Inc. and was acquired by Gamesboro Com Inc which was originally the Alliance Trophy Club Inc. It became Ton of Gold in 2004.

Point Loma Partners Inc identify themselves as "...work in partnership with a group of private equity firms actively looking to acquire majority or minority ownership in lower middle market companies throughout the U.S. and Canada. All of the funds we work with have committed capital"

So TNGL seems to have the financial backing and maybe those firms have dibs on the preferred shares.