Comstock Mining Receives Second Favorable Court Ruling
Virginia City, NV (May 21, 2019) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today that the First Judicial District Court of the State of Nevada, in and for Storey County, favorably granted its Motion for the Plaintiff to file a “more definite statement.”
On July 12, 2018, Precious Royalties LLC (“Precious”) filed a complaint against the Company in the First Judicial District Court of the State of Nevada, in and for Storey County, alleging that the Company failed to properly pay Precious a net smelter return royalty in accordance with a settlement agreement dated September 24, 2012, and seeking $510,000 in damages. On November 16, 2018, the Company filed a Motion for a “More Definite Statement” on the basis that the complaint is too vague to even allow a response. On May 16, 2019, the Court granted Comstock’s Motion, requiring Precious to revise and re-file its complaint in order to proceed with the action. The Company believes the Precious claims are completely without merit and will continue to vigorously defend the litigation.
Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “This ruling reaffirms our position that all royalties earned and paid to Precious were timely and accurate and we are gratified that vague and unsubstantiated claims were not deemed acceptable. We take the quality and thoroughness of our work and our commitments to our partners seriously. Vague and unsubstantiated claims are not acceptable to us and we are thankful that the Nevada court agreed.”
This favorable court order, along with the previous, recent, favorable rulings and all other recent events, will be updated into and included in the Company’s Financial Statements to be filed on Form 10-Q with the Securities and Exchange Commission that we now expect to file by the end of next week, if not sooner. The Company’s unaudited financial statements, as of and for the three months ended March 31, 2019, have previously been submitted and are available on Form 8-K Current Report dated May 15, 2019.
About Comstock Mining Inc.
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 this report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and the following: adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration 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; business opportunities that may be presented to, or pursued by, us; 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, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of 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 SEC; potential inability to list our securities on any securities exchange or market; inability to 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 or the solicitation of an offer to buy the Debenture or any other securities of the Company.
Tuesday, May 21, 2019