Comstock Inc (LODE) News & EventsLODEComstock Inc

Comstock Closes Transaction with Mackay Precious Metals Valued Over $45M

Comstock announced it has closed the previously announced transaction under which Mackay Precious Metals, a wholly owned subsidiary of Mackay Gold & Silver, acquired 100% of Comstock's mineral, mining, processing and mining-district-related real estate entities, with the aggregate transaction valued at more than $45M. Comstock has now received $20M in cash and 2M common shares of Mackay Gold & Silver currently valued at approximately $4.5M and expects to record a gain in a range of approximately $10M-$12M. The gain on the sale is not expected to result in any cash taxes. The transaction included the sale of all four of the Company's mining subsidiaries - Comstock Mining, Comstock Processing, Comstock Exploration and Development, and Comstock Real Estate - including all mining claims, town lots, processing facilities, operating permits and water rights. Mackay also assumed all of the reclamation obligations and other liabilities associated with the sold entities, along with all associated reclamation and surety bond deposits and collateral. A secured, second-tranche payment of $7M is due within 18 months. Per the sales agreement, Comstock retains a 1.5% NSR royalty from sales of silver, gold, and all other valuable minerals and products extracted from the sold properties, subject to the terms of the Royalty Agreement which was executed at closing. Mackay has the option to buy out the royalty at any time for $3.5M in cash. Comstock will further share in the success of Mackay's exploration and development activities through a contingent payment of $10M if, within seven years following closing, Mackay makes a decision to proceed with the construction of a mine on any of the properties, or Mackay is sold, merged, or otherwise participates in a change-of-control transaction with aggregate consideration of at least $500M. If the contingent payment does not occur, the value of the NSR buy out doubles to $7M after seven years. The divestiture will reduce ongoing payroll, permitting, environmental compliance, and related costs for maintaining these mining assets, resulting in an estimated $1.5M in annual operational savings.

Comstock Metals Completes Integration of Solar Panel Recycling System

Comstock announced that Comstock Metals has fully integrated, tested and operated its complete solar panel recycling system. Comstock Metals has started its first-of-a-kind, industry-scale solar recycling facility. The system has now successfully processed panels through every stage of production, completing the final major milestone in the testing and evaluation of each unit operation. Final integration will be completed mid-August, at which point the ramp-up process to the first production milestone will begin. This milestone transitions Comstock Metals from staged equipment commissioning to full-system operations and production ramp-up. All of the facility's processing stages have now been fully tested and connected and will be operationally integrated over the next few days. The first images in the appended video show the robotic system, feed conveyor, and particle dimensioning system in operation. This is followed by an open view of the oven system before being permanently closed; collectively representing the principal unit operations for shredding, conditioning, and other proprietary Comstock processes, and completing the start-up sequence for the 100,000-ton-per-year production line. The previously announced glass-upgrading systems have also been installed and tested ahead of the original production plan, adding expanded glass-treatment capabilities onto the original designs and supporting the production of higher-specification glass products.

Comstock Inc. Signs Solar Material Recycling Agreement with Illuminate USA

Comstock Inc. and Comstock Metals has entered into a Solar Material Recycling Services Agreement with Illuminate USA. Under the new agreement, Comstock Metals will provide comprehensive recycling services for solar panel materials from Illuminate USA's manufacturing operations in Pataskala, Ohio. The services include safe transportation, sorting, and environmentally responsible recycling for a broad range of solar panel manufacturing byproducts. Illuminate USA operates the largest single-site solar panel manufacturing facility in North America. The two companies will work together over the next few years to responsibly recycle various material streams.