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.
