Comstock Mining Signs Definitive Agreement for Mercury Remediation Systems
Virginia City, NV (June 28, 2019) Comstock Mining Inc. and a subsidiary (collectively, the “Company” or “Comstock”) (NYSE American: LODE) announced today that it has entered into a definitive agreement with Mercury Clean Up LLC (“MCU”), in collaboration with Oro Industries Inc. (“Oro”), for the manufacture and global deployment of mercury remediation systems with proprietary mechanical, hydro, electro-chemical and oxidation processes to reclaim, treat and remediate mercury from tailings and industrial effluents derived from mining and other industrial applications. Oro owns all of the intellectual property and MCU has the exclusive worldwide rights to the proprietary mercury treatment system (the “Mercury Remediation System.”) MCU, in partnership with Comstock, will deploy that solution globally.
Worldwide unregulated activity has released thousands of tons of mercury into the environment. The continued worldwide use of mercury in unregulated activities, primarily outside of the United States, is polluting air, soils, and waters and poisoning marine life and endangering lives. Ongoing, unregulated artisanal mining outside of the U.S. represents more than 40% of the ongoing mercury contamination and represents an enormous opportunity for cleaning up the environment in a sustainable, profitable manner.
The almost 140-nation, globally-sponsored, 2017 Minamata Convention on Mercury represents a relatively new international treaty designed to prioritize, support and protect human health and the environment from releases of mercury. This treaty is uniting governments, scientists, non-government organizations and now MCU, in eliminating the use of mercury in mining. Mercury will not go away by itself and must be removed to stop the pollution. Mercury can’t be broken down or destroyed, and MCU, in collaboration with Oro and Comstock, is pioneering the solution for removing the mercury efficiently and effectively.
From 2013 to 2016, Oro conducted a series of scientific, international studies that tested over 50 samples of mine tailings from wide-spread uses of Mercury in numerous artisanal mining sites. The study developed a safe and economical Mercury recovery process that remediates historic contamination and prevent new contaminations. The study showed that gold recoveries could self-sustain the remediation.
Comstock will invest $2 million in MCU, with the Right of First Refusal on both business and capital investments. Comstock will own up to 25% of MCU and separately, 50% of a new 50-50 venture called Comstock Mercury Remediation LLC, effectively resulting in a 62.5% profit interest for Comstock.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “The goal of eliminating mercury contamination from the environment and current, ongoing mining processes profitably is a staggering opportunity for our planet, our partners and our company and represents a significant step forward in our strategy for delivering conservation-based, economically enhancing mining technologies and processes, and our partners are already receiving and analyzing domestic and international inquiries.”
MCU’s Immediate Next Steps
Oro will commence manufacturing for the deployment of the 2-25 ton per hour mercury recovery plant coupled with a 200 gallon-per-minute dissolved air flotation water recycling treatment plant and field laboratory. The entire system will be mounted on three separate trailers for mobility. Initial equipment setup will rest on the Company’s fully contained, double-lined processing facility.
Mr. Paul Clift, founder of Oro and Co-founder of MCU stated, “Both parties have a proven track record of environmental excellence and innovation and we welcome this partnership for solving a critical, global contamination problem. We have been bombarded with requests for a mercury solution and Oro has been committed to chemical free, safe solutions for global miners. Together, through MCU, we will deliver the only safe, efficient and economically feasible solution for what is truly a global dilemma.”
About Comstock Mining Inc.
About Oro Industries 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, 2018, 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.
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Friday, June 28, 2019