VIRGINIA CITY, Nev., Oct. 15, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (“Comstock”) (NYSE American: LODE) announced today that it has agreed to extend the closing deadline on the sale of Lucerne to Tonogold Resources, Inc. (“Tonogold”) until October 31, 2019. Tonogold has agreed to an additional non-refundable cash deposit of $300 thousand and provided for an additional, non-refundable stock-based fee totaling $250 thousand. With this extension, Tonogold will have paid non-refundable cash deposits totaling $4.225 million plus $5 million in non-refundable Convertible Preferred Stock (“CPS”). The CPS is 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.
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 31, 2019, with an additional cash payment due at closing of $3.625 million, less any additional cash deposits. This results in total cash payments at closing of $7.55 million for a 50.3% ownership interest in Comstock Mining LLC. The remaining cash purchase price of $3.95 million will be deferred with monthly scheduled payments of at least $650 thousand, between January 2020 and June 2020. Tonogold’s obligation to make the deferred scheduled payments will be secured by a collateral interest in the ownership interests in, and/or the assets of, Comstock Mining LLC. 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 been working diligently toward closing and has assembled an impressive list of investors. We are excited about the exploration and development plans and look forward to closing in the next few weeks and bringing almost a full year of hard work to fruition.”
