This is the world of junior explorer/developer/miner.
Tono’s FAILURE to close the deal after nearly two years, coupled with the Silver Springs land deal not closing has caused the dilution and delay in development of Dayton & Spring Valley.
You need to understand that they have to pay the expenses/leases/reclamation associated with ALL mining claims, including the Lucerne & NCJV plus interest on the debenture until the deals close. The debenture will not allow them to borrow funds, so their only option is dilution. Yes, Tono is supposed to reimburse for costs associated with the Lucerne, NCJV and related interest on the debenture, and so far, I believe they have. However, this would be a non-issue if Tono had been able to raise the funds, when expected, and close the deal. Until then, all liabilities remain on Comstock’s books and their responsibility to pay.
Drilling & paying a third party to prepare NI 43-101’s are very expensive. The Company has two choices: wait until the non-mining assets are sold and the liabilities associated with them are gone or attempt to raise millions of dollars in the market (dilute existing shareholders significantly) to fund the exploration of Dayton / Spring Valley. Clearly, they have chosen to wait for the land deals and issue shares only as needed to meet obligations.
The green technology and mercury remediation is new and unproven and this is very much speculation; however, they could very well be game changers for the Company. I expect Corrado to provide further detail in the call this morning.
