Comstock Inc. sells mining claims and interests to Mackay Precious Metals for $2.75 million and future royalties.
Quiver AI Summary
Comstock Inc. announced it has entered into a Membership Interest Purchase Agreement to sell its northernmost mining claims and exploration rights, called the Northern Targets, to Mackay Precious Metals Inc. for $2.75 million and a 1.5% production royalty on extracted minerals. Comstock will receive $1.3 million in cash upfront, with additional payments totaling $1.45 million expected by mid-February 2025 and after Mackay's public listing. The sale follows a previous leasing agreement with Mackay, which generated approximately $3.7 million in lease payments. Comstock’s executive chairman, Corrado De Gasperis, expressed satisfaction with the transaction, highlighting the funds will help focus on advancing Comstock's other resources.
Potential Positives
- Comstock Inc. executed a Membership Interest Purchase Agreement to sell its Northern Targets, realizing approximately $6.5 million in total consideration from lease payments and sale price, which strengthens its cash position.
- The agreement includes a 1.5% NSR production royalty on future mineral sales, ensuring long-term revenue from the sold properties in perpetuity.
- The company can now focus on advancing its Dayton Consolidated and Lucerne resource plans, indicating a shift towards more strategic and potentially profitable operations.
- This transaction demonstrates Comstock's proactive asset management, allowing for the better allocation of resources towards high-value projects in gold and silver.
Potential Negatives
- The sale of the Northern Targets may indicate that Comstock does not view these assets as viable for its future development plans, potentially signaling strategic weaknesses.
- The termination of the Mackay Lease may suggest operational setbacks or difficulties in maintaining partnerships, which could impact investor confidence.
- The reliance on contingent payments from Mackay's public listing and the potential for payments in equity rather than cash could introduce financial uncertainty and risk of dilution for existing shareholders.
FAQ
What recent agreement did Comstock Inc. announce?
Comstock Inc. announced a Membership Interest Purchase Agreement to sell its northern mining claims and a stake in Pelen LLC to Mackay Precious Metals Inc.
What is the total purchase price for the sale?
The total purchase price for the sale is $2.75 million, plus a 1.5% NSR production royalty on extracted minerals.
What are the Northern Targets mentioned in the press release?
The Northern Targets include patented and unpatented mining claims and mineral rights located in Storey County, Nevada, primarily the Gold Hill and Occidental Lode claims.
How much has Comstock received from the lease with Mackay?
Comstock has received $3.7 million in total lease payments from Mackay since executing the lease agreement in June 2023.
What does Comstock plan to focus on after this sale?
Comstock plans to advance its Dayton Consolidated and Lucerne resources while expanding its gold and silver potential in the southern district.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$LODE Insider Trading Activity
$LODE insiders have traded $LODE stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $LODE stock by insiders over the last 6 months:
- LEO M DROZDOFF purchased 200,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$LODE Hedge Fund Activity
We have seen 23 institutional investors add shares of $LODE stock to their portfolio, and 20 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RENAISSANCE TECHNOLOGIES LLC removed 1,191,132 shares (-41.5%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC added 568,721 shares (+54.9%) to their portfolio in Q3 2024
- FARTHER FINANCE ADVISORS, LLC added 518,242 shares (+38.2%) to their portfolio in Q3 2024
- SQUAREPOINT OPS LLC removed 419,152 shares (-100.0%) from their portfolio in Q3 2024
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 353,928 shares (+334.6%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC removed 327,501 shares (-100.0%) from their portfolio in Q3 2024
- SPIRE WEALTH MANAGEMENT added 280,970 shares (+180.3%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
VIRGINIA CITY, Nev., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced it has executed a Membership Interest Purchase Agreement (the “MIPA”) to sell 100% of the northernmost patented and unpatented mining claims, mineral exploration rights and town lots (the “Northern Targets”) currently owned by Comstock’s wholly-owned subsidiary Comstock Northern Exploration, LLC., plus all of the 25% issued and outstanding membership interest that Comstock owns in Pelen LLC (“Pelen”) to Mackay Precious Metals Inc. (“Mackay”) for an aggregate purchase price of $2.75 million (the “Purchase Price”) and a 1.5% NSR production royalty from the sales of silver, gold, and all other valuable minerals and products extracted from these properties, in perpetuity.
The Company was paid $1.3 million in cash with another $0.45 million due before February 15, 2025, plus an additional $1.0 million that will be paid within 45 days of the completion of Mackay’s public listing, at the election of Mackay, in either cash or their publicly registered common shares. The monetized value of $1.0 million from the public listed shares is guaranteed by the value date of October 31, 2025.
On June 30, 2023, Comstock executed a Mineral Exploration and Mining Lease Agreement (“Mackay Lease”) with Mackay. Since June 30, 2023, Comstock has received cash of $3.2 million in initial and ongoing lease payments and will also receive an additional, final pro-rata lease payment associated with these properties of $0.5 million before February 15, 2025. The $3.7 million in total lease payments are in addition to the $2.75 million sale price. The parties terminated the Mackay Lease on December 18, 2024.
The Northern Targets encompass both the Gold Hill and Occidental Lode claim groups in Storey County, Nevada. Pelen owns certain claims adjacent to and/or relevant to these northern claim groups.
“Our Northern Targets were never an effective part of our district-wide development plans, so realizing nearly $6.5 million in consideration from this lease and subsequent sale, plus the retention of royalties in perpetuity, is extremely positive for Comstock, especially as we activate our plans for advancing the S-K 1300 compliant Dayton Consolidated and permitted Lucerne resources, and more aggressively expand the gold and silver potential in the southern part of the district,” said Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “We are bullish on our gold and silver resources, especially as both our hard rock and metal recycling activities aggressively expand into this silver cycle.”
About Comstock Inc.
Comstock Inc. (NYSE: LODE) commercializes innovative technologies that contribute to global decarbonization and the clean energy transition by efficiently converting under-utilized natural resources, primarily, woody biomass into low-carbon renewable fuels, end-of-life metal extraction and renewal, and generative AI-enabled advanced materials synthesis and mineral discovery for sustainable mining. To learn more, please visit
www.comstock.inc
.
Comstock Social Media Policy
Comstock Inc. has used, and intends to continue using, its
investor relations
link and main website at
www.comstock.inc
in addition to its
Twitter
,
LinkedIn
and
YouTube
accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contacts
For investor inquiries
:
RB Milestone Group LLC
Tel (203) 487-2759
ir@comstockinc.com
For media inquiries
:
Comstock Inc., Tracy Saville
Tel (775) 847-7573
media@comstockinc.com
Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
