Comstock Mining Inc

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Comstock Mining Inc
Wednesday, May 15, 2019

Comstock Mining and Lyon County Receive Favorable Court Ruling;
Master Plan and Zoning Decisions Reaffirmed

Virginia City, NV (May 15, 2019) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced today that the Third Judicial District Court of the State of Nevada, at a hearing held yesterday, ruled in favor of the Company and Lyon County on the one remaining Due Process rights claim associated with the Lyon County Board of Commissioners Master Plan amendment and zone change associated with certain mineralized properties within the Company’s Dayton Resource Area, just south of the Company’s Lucerne properties and near Silver City, Nevada. 

The District Court found that the Comstock Residents Association (the “CRA”), having been afforded the full opportunity to conduct any and all discovery, failed to establish that the Lyon County Board of Commissioners had denied the organization its due process rights and reaffirmed prior favorable rulings.

The District Court’s ruling concludes that the Lyon County Board of Commissioners satisfied constitutional due process requirements and that the Commissioners were entitled to vote on the applications filed by the Company, properly voted to approve the Company’s requested Master Plan and zoning changes, denying the CRA’s claims and reaffirming the propriety of the land use changes.

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “This ruling was anticipated and deeply rewarding to hear directly from Judge Robert Estes.  Lyon County holds itself to the highest standards of governance and transparent public process, a critical component of our democratic processes, and this ruling reaffirms the standard of excellence and transparency that we must all hold ourselves to.  We look forward to advancing the community planning process with Silver City and Lyon County and advancing the exploration, development and permitting of our properties for their highest and best uses.” 

This favorable, definitive ruling, along with the previous 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 today or before May 20, 2019.  The Company’s unaudited financial statements, as of and for the three months ended March 31, 2019, have been included in an attachment to this release, for convenience.

View the, combined, attached financial documents

COMSTOCK MINING INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
COMSTOCK MINING INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
COMSTOCK MINING INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
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Thursday, May 9, 2019

Comstock Mining Announces First Quarter 2019 Results
Completes Realignment, Progresses Lucerne and Significantly Reduces Debt

Virginia City, NV (May 9, 2019) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced selected unaudited financial results for the fiscal quarter ended March 31, 2019.

First Quarter 2019 Selected Strategic Highlights 

  • Executed the definitive agreement (the “Tonogold Agreement”) for the sale of the Company’s Lucerne properties to Tonogold for total consideration of approximately $23 million, consisting of $11.5 million in cash, $3.5 million in stock and $8.0 million in assumed liabilities, plus future royalties;
  • Received $2 million in non-refundable deposits and reduced debenture principal to $7.9 million;
  • Received commitments for an additional $1 million in non-refundable deposits in Q2 2019;
  • Granted Tonogold an option, upon the Lucerne closing, to lease American Flat processing facility for:
    • $1 million per annum, plus $1 per ton until $15 million received by the Company;
    • $1 million per annum, plus $0.50 per ton for the next $10 million received ($25 million total); and
    • $0.25 per ton for all tons processed after the Company receives $25 million.
  • Executed agreements to sell the Silver Springs non-mining assets for $9.75 million;
  • Commenced the realignment of the Company’s organizational structure for optimizing future growth; and
  • Advanced negotiations of multiple, clean technology ventures for revenue growth.

First Quarter 2019 Selected Financial Highlights 

  • Environmental and reclamation expenses achieved a record low of $0.05 million in Q1 2019, an 8% reduction as compared to $0.06 million in Q1 2018, driven by higher 2018, site-water management costs;
  • General and administrative expenses were lower at $0.66 million in Q1 2019, a 9% reduction as compared to $0.73 million in Q1 2018; driven by lower net administrative costs;
  • Net loss was $1.8 million, or ($0.02) loss per share for Q1 2019, as compared to net loss of $2.5 million, or ($0.05) loss per share for Q1 2018, primarily from lower operating and acquisition-related expenses;
  • Net cash used in operations was $0.9 million in Q1 2019, as compared to a net use of $1.1 million in Q1 2018, primarily resulting from lower operating expenses and lower uses for working capital; 
  • Net cash provided by investing activities was $1.6 million in Q1 2019, substantially all from the $2.0 million in non-refundable deposits from Tonogold, offset by $0.4 million used toward property purchases;
  • Net cash used in financing was $0.8 million in Q1 2019, primarily reflecting $1.6 million in principal payments in long term debt, offset by $0.8 million in cash proceeds from the issuance of common stock;
  • Cash and cash equivalents at March 31, 2019, were $0.3 million;
  • Received additional $0.35 million in cash for non-refundable deposits by May 3, 2019;
  • Expect an additional $0.65 million in cash for non-refundable deposits by May 24, 2019; and
  • Common shares outstanding at March 31, 2019, were 80,790,273 shares.

Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our year over year costs are down, primarily from net reductions in our environmental and administrative expenses. The Tonogold Agreement ensures further reduced operating and interest expense reductions of approximately $2 million per annum, effective June 1, 2019.”

Lucerne Resource Area
On January 24, 2019, the Company entered into the Tonogold Agreement for the sale of its Lucerne properties (~1200 acres) to Tonogold for $15 million which, upon closing, replaces the option agreement announced in October of 2017.

On April 30, 2019, the Tonogold Agreement was amended (the “Amendment”), allowing Tonogold the option to extend the closing for three additional months, upon the payment of three additional $1 million non-refundable deposits and other considerations. The Amendment contemplates that Tonogold will pay the Company $11.5 million in cash and $3.5 million in an interest-bearing, convertible note at closing. The Amendment also requires Tonogold to reimburse the Company for the monthly interest expense on the Company’s Senior Secured Debenture, and over $1 million in annual operating expenses associated with the American Flat platform, both beginning on June 1, 2019, regardless of when the Lucerne sale closes.

Additionally, Tonogold is in advanced stage negotiations with a third party over securing additional significant claims in Storey and Lyon County, with the Company’s concurrence and support, that enhances the scope and potential of the Lucerne project and is conditioned upon: (a) closing the sale of the Lucerne properties; (b) Tonogold assigning certain Lyon County patented and unpatented mining claims to the Company for no additional consideration; (c) the new Storey County claims to be acquired by Tonogold being subject to the NSR Royalty Agreement with the Company and (d) Tonogold assigning any royalty interests owned on the Company’s existing Dayton property patented and unpatented claims package to the Company.

According to Tonogold’s public statements, Tonogold has secured significant interest for funding the purchase of the Lucerne properties and is finalizing negotiations with optimal terms and allocations.  Tonogold has also stated that it has executed a term sheet for a $5 million debt financing with the option for drawing an additional $25 million for development, production start-up and working capital, subject to customary due diligence and closing conditions. Tonogold also stated they have engaged Mine Development Associates ("MDA") of Reno, Nevada to undertake and complete a 43-101 compliant Preliminary Economic Assessment ("PEA") on the Lucerne Deposit.  The 43-101 compliant PEA is expected to be completed by July 2019.

Mr. De Gasperis commented, “Tonogold has made consistent progress toward acquiring the Lucerne mine and has worked effectively to secure sufficient strategic investment capital for closing this transaction and funding Lucerne development.  We have received $2.35 million in non-refundable deposits with an additional $0.65 million due in the next 2 weeks. These payments will bring our Debenture principal down to $7.2 million. These results are truly outstanding and we look forward to closing transaction in the next few months.”

Dayton Resource Area
The Company plans to advance the Dayton Project to full feasibility assessment, with a production ready mine plan within two years of commencing that work. This work has not yet commenced but with the completion of the Lucerne transaction, the Company should have the capacity and wherewithal for advancing the plan. 

The Company also plans continuing its exploration activities southerly into Spring Valley with incremental exploration programs that include exploration and definition drilling of targets identified by geophysical surveys, surface mapping, prior drilling and deeper geological interpretations that will all lead to publishing an updated, NI 43-101 compliant, mineral resource estimate for the Dayton Project and the expanded exploration opportunities in Spring Valley during 2019.

The Company has also commenced collaborating on community development planning activities in Silver City associated with Dayton Mine planning and expects to begin local permit activities in 2019, for the Dayton Project following those planning activities.

Corporate Realignment
During the first quarter of 2019, the Company’s Board of Directors determined that it would be in the best interests of the Company and its stockholders to implement a strategy (the “Strategic Focus”) focused on high-value, high cash-generating, precious metal-based activities, including, but not limited to, metals and mining and related supply chain asset acquisitions, exploration, engineering, resource development, economic feasibility assessment, mineral production, metal processing and environmentally-friendly, conservation-based, economically enhancing mining technology and processes.  The Board commenced realigning its assets in the first quarter of 2019.

The Board also determined to facilitate the formation of a new entity to be named Comstock Capital Partners, LLC (“CCP”) or such other name deemed appropriate by management of the Company that qualifies as an opportunity zone fund in accordance with the Tax Cuts and Jobs Act in order to minimize unnecessary dilution, access capital efficiently, position the Company to maximize the potential benefits of the existing Northern Nevada platform in the existing and potential opportunity zone assets and foster metals and mining based investments that are consistent with the Strategic Focus.  

Comstock Realignment

The Company and Comstock Processing LLC, a wholly owned subsidiary of the Company, are pursuing strategic ventures for mercury remediation, leach pad, tailings and waste dump reprocessing and water remediation and purification.

Liquidity & Capital Resources

During the first quarter, the Company received $2.0 million in cash proceeds from Tonogold and used $1.4 million to pay down Senior Secured Debenture principal.   The Company had total assets of $28.2 million, total current assets of $10.1 million, current liabilities of $3.9 million and net current assets of $6.2 million. The Company’s current capital resources include cash and cash equivalents and other net working capital resources, along with an equity sales agreement (the "Sales Agreement") with Murray FO, LLC ("Murray"), with aggregate unused capacity of $5.0 million, for a 5% fee subject to certain volume and pricing restrictions pursuant to the Company’s shelf registration statement on Form S-3, filed on February 26, 2019. The 5% fee will be paid with 657,778 restricted shares and 408,000 unrestricted shares.

These capital resources are in addition to certain planned non-mining asset sales and proceeds of the transaction contemplated by the Tonogold Agreement, including an additional $350,000 received from Tonogold through May 3, 2019, and an additional $650,000 due by May 24, 2019.  The Company expects the Tonogold transaction to close on or before June 21, 2019, otherwise, an additional $1 million non-refundable deposit becomes due on that date.

On February 25, 2019, the Company entered into agreements to sell one non-mining asset, that is, the 98-acre certified industrial site and related water rights, and to sell the purchase agreements and option on the 160 acres of land, all located in Silver Springs, NV, for a total of $9.75 million plus a residual 3% future share of the profit. The transactions are expected to be finalized in 2019, and the Company expects to record gain of about $5 million.

The shares outstanding on May 9, 2019, and March 31, 2019, were 81,290,273 and 80,790,273, respectively.

Outlook
The Company’s annual operating expenses are planned at $3.8 million, with approximately $1.2 million of that amount currently being reimbursed under the existing Tonogold Option Agreement. The Company anticipates over $1 million in additional, annualized savings from the Tonogold Amendment, effective June 1, 2019, regardless of when the transaction closes.  The transaction would also result in an early extinguishment of its approximate $7.9 million outstanding Senior Secured Debenture obligation, eliminating more than $1 million in annualized interest expense. Theses interest savings will also be effective June 1, 2019, regardless of when the transaction closes.

The Company’s second half 2019 plans include advancing the commercialization of certain mining and processing technologies that the Company has been collaborating on, with partners such as Itronics Inc., and Oro Industries Inc., and others, and includes reclamation and enhanced recoveries that present nearer term revenue opportunities and potentially enhance the economic feasibilities of our existing properties.  The Tonogold Amendment supports these opportunities by reaffirming the Company’s right to use the American Flat PP&E for any purpose that does not materially interfere with Tonogold’s processing plans, including but not limited to, testing, reprocessing, removing, and/or selling previously stacked and leached material.

The Company expects to announce various ventures and alliances, all designed for profitable revenue growth, during the second and third quarters of 2019. The ventures and our strategic partners will be showcased during our annual meeting, planned for early September 2019, at the Gold Hill Hotel in Gold Hill, Nevada.

Conference Call
The Company will host a conference call today, May 9, 2019, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: 1-888-241-0551
International Direct: 1-647-427-3415
Conference ID: 8058709

The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Monday, May 6, 2019

Comstock Announces Solid Progress on Lucerne Transaction;
Tonogold Commits Additional $1 million in Non-Refundable Deposits

Virginia City, NV (May 6, 2019) Comstock Mining Inc. (“Comstock” or “the Company”) (NYSE American: LODE) today announced significant progress toward the completion of the sale of its Lucerne properties (“Lucerne”).

The Company understands that Tonogold Resources, Inc. (“Tonogold”) has secured significant interest for funding the Lucerne purchase and is finalizing negotiations of optimal terms and allocations. Tonogold also recently executed a Term Sheet with Nebari Holdings, LLC (“Nebari”) for a $5 million, debt financing with the option for drawing an additional $25 million for development, production start-up and working capital, subject to customary due diligence and closing conditions. Nebari is Comstock’s current lender.

Mr. Mark Ashley, President and CEO of Tonogold stated, “Our diligence is paying off with the assembly of an outstanding group of strategic resource investors who understand the significance of the gold and silver resource at Lucerne and the greater exploration potential of the whole northern portion of the Comstock District.  We look forward to accelerating and consummating the transaction announced with Comstock in January 2019, in the next few months.”

Tonogold has also committed and partially funded another $1 million in non-refundable deposits. For the year-to-date, Comstock has received $2,350,000 in cash as non-refundable payments, including $350,000 recently,  toward the aggregate purchase price, with an additional $450,000 and $200,000 due on or prior to May 17, and May 24, 2019, respectively. These payments extend the deadline for closing the transaction to June 21, 2019.  Comstock has received $350,000 and will use seventy-percent of the entire $1 million in payments to pay down its outstanding debenture, bringing the outstanding principal down to approximately $6.7 million. 

Accordingly, both parties have reached an agreement to provide additional extension opportunities for closing on Lucerne, primarily to allow for a more thorough and efficient financing and closing process. Comstock agreed to provide Tonogold with the flexibility to close on Lucerne on or prior to August 30, 2019, subject to making additional $1 million monthly non-refundable deposits in late June 2019 and late July 2019, if needed. If the closing occurs after the original deadline of May 31, 2019, Tonogold will also reimburse Comstock for all incremental interest costs and substantially all property carrying costs, as previously agreed. 

Comstock now anticipates, and the amendment allows for, Tonogold to deliver $11.5 million in cash at closing, less the amounts of the cumulative non-refundable payments made by Tonogold at that time, and a one-year maturing, interest bearing note converting into shares in Tonogold if not repaid previously, to Comstock with a principal amount of $3,500,000. The conversion price will be the lowest of (1) the 20-day volume weighted closing price of Tonogold shares prior to conversion, (2) Tonogold’s most recent private placement or (3) Tonogold’s initial public offering price.

Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “Tonogold has made consistent progress toward acquiring the Lucerne mine and has worked effectively to secure sufficient strategic investment capital for closing this transaction and funding Lucerne development.  The effort and results are both outstanding and we look forward to closing the Lucerne transaction in the next few months.”

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock and Tonogold. Forward-looking statements are statements that are not historical facts.  All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: capital raising activities and negotiations; market conditions; future changes in exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; operational and management restructuring activities; capital expenditures (by Comstock, Tonogold or other parties) and their impact; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.  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. These statements are based on assumptions and assessments made by the management of Comstock and Tonogold 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 that 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 discussed in Item 1A, “Risk Factors” of the annual report on Form 10-K of Comstock. Occurrence of such events or circumstances could have a material adverse effect on the business, financial condition, results of operations or cash flows or the market price of Comstock and Tonogold’s securities. All subsequent written and oral forward-looking statements by or attributable to Comstock, Tonogold or persons acting on their behalf are expressly qualified in their entirety by these factors. Neither Comstock nor Tonogold undertake any obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any other securities of Comstock or Tonogold.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Thursday, May 2, 2019

Comstock Mining Announces Notice of First Quarter 2019 Results and
Business Update Conference Call

Virginia City, NV (May 2, 2019) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Thursday, May 9, 2019 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report First Quarter results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: 1-888-241-0551
International Direct: 1-647-427-3415
Conference ID: 8058709
The audio will be available, usually within 24 hours of the call, on the Company website:
ComstockMining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, March 19, 2019

Comstock Mining Receives Additional $1 Million Toward Lucerne Mine Sale

Virginia City, NV (March 19, 2019) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today that it received a second $1 million non-refundable payment toward the sale of its Lucerne properties (~1200 acres) to Tonogold Resources, Inc. (“Tonogold”) (OTCMKTS: TNGL). On January 28, 2019, the Company announced it entered into a definitive agreement with Tonogold for $15 million in cash, $8 million in obligation relief, a permanent reduction of annual operating expenses by $1 million, and a retained 1.5% net smelter return royalty on Lucerne properties.

The Company will transfer the ownership or control of the Lucerne properties and related permits, including the recently extended Storey County Special Use Permit for mining and processing.  The Company retains ownership and/or control of the remaining land position in the Comstock district, including but not limited to the Dayton, Spring Valley and the American Flat properties. The Company expects the transaction to close over the next two months. 

Strategic Partnership and Sale Highlights 

  • Provides a minimum of $10 million in cash to the Company, eliminating the Debenture debt;
  • Provides $5 million in cash to the Company in 2020, accelerating Dayton developments;
  • Relieves $8 million in obligations, primarily for the Northern Comstock (NCJV) obligations;
  • Grants Tonogold an option to lease the American Flat property and equipment for:
    • $1 million per annum, plus $1 per ton for the first $15 million;
    • $1 million per annum, plus $0.50 per ton for the next $10 million ($25 million total); and
    • $0.25 per ton for all tons processed over $25 million in revenue.
  • Subsidizes $1.1 million per annum in American Flat related expense;
  • Retains a 1.5% Lucerne net smelter royalty; and
  • Eliminates our Debenture obligation and over $1 million in related, annual interest costs.  

Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “The additional $1 million in non-refundable deposit reaffirms Tonogold’s progress and commitment for advancing this transaction and advancing the Lucerne mine back into production.  We look forward to closing during the next quarter.”

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: future prices and sales of, and demand for, our products; profitability; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures (by the Company or other parties) and their impact on us; nature and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, sustainability, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.  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. 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 that 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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. We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, February 26, 2019

Comstock Mining Signs Agreements to Sell Non-Mining Assets;
Announces Enhanced Strategic Focus and Formation of Comstock Opportunity Zone Fund

Virginia City, NV (February 26, 2019) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced it has formally signed agreements to sell the Company’s non-mining assets in Silver Springs, Nevada. These non-mining assets include the Company’s 98-acre certified industrial site and related senior water rights  and the purchase agreements and options on the 160 acres of land and water and sewer rights for a total of $9.75 million. As part of the agreements, the Company retains a 3% future profit sharing interest on the resale of these assets.  The sales are expected to close between March and September 2019. The Company expects to record a gain of approximately $5 million. 

Corrado De Gasperis, Executive Chairman and CEO said, “With the explosive growth in the nearby Tahoe Reno Industrial Center, our non-mining assets are in an ideal location for a developer to capitalize on and grow into this region.”  

The Company’s Board has also determined, consistent with the sale of these non-mining assets, it is in the best interests of the Company and its shareholders to implement a strategy that is solely focused on high-value, high cash-generating, precious metal-based activities, including, but not limited to, metals and mining and related supply chain ventures and acquisitions, mineral exploration, engineering, resource development, economic mineral production, metal refining and environmentally-friendly, conservation-based, economically enhancing mining technologies  and related processes.

Mr. De Gasperis, continued, “We are leveraging our mining platform and multiple-tax efficient positions to deliver superior returns.  Consistent with our strategic focus, the Board has approved the formation of a precious metal and mining focused, Comstock-based opportunity zone fund, creating an investment vehicle to tax-efficiently partner with the Company for the exploitation of precious-metal based opportunities in Nevada-based or other qualified opportunity zones.” 

On August 27, 2018, the Company received notification from the NYSE American LLC that the Company’s securities had been selling at or below $0.20 per share and the Company would have six months to cure the minimum price compliance requirement. The Company recently received notification from the NYSE American LLC (“NYSE”) that the Company has been granted an extension to May 31, 2019,  to regain compliance with the NYSE continued listing standards.   The Company believes its business strategy and plans for 2019, including closing on the previously announced transactions, will be sufficient for regaining compliant share price levels.  Otherwise, the Company would effect a reverse stock split to regain minimum price levels.  With the recent extension, the Company’s continued listing is predicated on demonstrating sustained price improvement no later than May 31, 2019.    

Mr. De Gasperis concluded, “We are delighted by the support and extension from the NYSE.  With our recently announced strategic partnerships and agreements to monetize our non-mining assets, we believe we will regain price compliance as a matter of due course.  The NYSE represents the highest standard in quality, compliance and reputation, and we highly value the liquidity and protections it provides our shareholders and we do not see that relationship changing, now or in the future.”

The NYSE American notification does not affect the Company’s business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company’s material agreements.  The Company’s common stock continues to trade under the symbol “LODE” with an added designation of “.BC” to indicate that the Company is below compliance with the NYSE American LLC’s listing standard.
 
About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, February 5, 2019

Comstock Mining Announces 2018 Year End Results
Advances Lucerne and Non-Mining Assets Sales

Virginia City, NV (February 5, 2019) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced selected unaudited financial results for the fiscal year ended December 31, 2018. The Company has also entered into definitive agreements with Tonogold Resources Inc. (“Tonogold”) to sell the Lucerne properties and accelerate the development of the Lucerne mine back into production.

2018 Selected Strategic and Operational Highlights 

  • Received the 2018 BLM Sustainable Mineral Development Award;
  • Received Board approval to sell Silver Springs non-mining assets for $9.75 million, plus residual;
  • Extended the landmark Special Use Permit for mining and processing Lucerne to 2034; 
  • Entered into definitive agreements with Tonogold to sell Lucerne, received $1 million deposit:
    • Provides $10 million in cash to the Company in early 2019, eliminating debt;
    • Provides $5 million in cash in early 2020, accelerating Dayton resource development;
    • Relieves $8 million in obligations, primarily for Northern Comstock (NCJV) obligations;
    • Subsidizes $1.1 million per annum in American Flat related expense;
    • Retains a 1.5% Lucerne net smelter royalty; and
    • Eliminates our Debenture obligation and over $1 million in related, annual interest costs.  
  • Received over $4 million in cash proceeds from the Lucerne option and sale agreements;
  • Uncovered a new, 90.8-foot, high-grade, mineralized shear-zone in the Dayton adit averaging 0.043 gold and 0.404 silver ounces per ton; and
  • Progressed, with Behre Dolbear, an updated resource estimate for a new Dayton NI 43-101 report.

The agreement with Tonogold also grants an option to lease the American Flat property and equipment for $1 million per annum, plus $1 per ton for the first $15 million; $1 million per annum, plus $0.50 per ton for the next $10 million ($25 million total) and $0.25 per ton for all tons processed thereafter.

Corrado De Gasperis, Executive Chairman and CEO of the Company, said, “We dedicated 2018 to repositioning the platform by forging agreements to option and sell Lucerne, lease American Flats and enable the sale of the Silver Springs non-mining assets by leveraging the newly designated Opportunity Zones, while significantly reducing liabilities and operating costs in almost every category over the past two years, enhancing liquidity and positioning the company for meaningful and substantial growth. We expect to close these transactions over the next few months, bringing us over $20 million dollars in 2019.” 

Full Year 2018 Selected Financial Highlights 

The Company recorded record low operating costs and expenses during 2018, of $7.6 million, a 16.0% reduction from 2017, and a 50.6% cumulative, two-year reduction, when compared to 2016.  These 2018 reductions include approximately $1.2 million in reimbursements from Tonogold Resources Inc. (“Tonogold”) but also include approximately $0.75 million in additional non-recurring expenses, primarily legal, transactional and consultative costs included in general and administrative costs, associated primarily with strategic initiatives, including but not limited to, the Tonogold transactions, the monetization of non-mining assets, debt financings and related administrative costs.

  • Costs applicable to mining were $2.8 million in 2018, a 16.0% improvement compared to 2017.
  • Real estate operating costs were $0.04 million in 2018, a 44.5% improvement compared to 2017.
  • Mine claim costs were $0.1 million in 2018, an 87.7% improvement compared to 2017. 
  • Exploration and development were $0.3 million in 2018, a 15.3% improvement compared to 2017. 
  • Environmental expenses were $0.3 million in 2018, a 67.2% improvement compared to 2017. 
  • General and administrative expenses were $3.4 million in 2018, including non-recurring expenses.  
  • Net loss was $9.5 million, or ($0.16) loss per share for 2018, as compared to net loss of $10.6 million, or ($0.26) loss per share for 2017, with improvement from the net cost reduction efforts.
  • Net cash used in operations was $3.8 million in 2018, as compared to $6.5 million in 2017, primarily resulting from reductions in both costs and cash uses for working capital.
  • Total debt was $9.8 million at December 31, 2018, a 14.3% reduction, from $11.5 million in 2017.
  • Cash and cash equivalents at December 31, 2018, were $0.5 million. 

Mr. De Gasperis added, “Our focused cost reduction efforts, coupled with expanded strategic partnerships, well-positions us to advance our mine projects, both the Dayton and Lucerne, at a very low net cost and in a capital efficient manner.  We now have the partners and agreements in place to monetize our permitted platform and our non-mining assets, allowing us to self-fund our projects to feasibility and eliminate debt.

Environmental Excellence and Sustainability
The Company is an established leader in sustainable, responsible mining and received the 2018 Sustainable Mineral Development Award from the United States Bureau of Land Management (BLM).  In 2017, and in 2015, the Company received Nevada’s Excellence in Reclamation Award, voted unanimously by the Nevada Division of Minerals, the Nevada Division of Environmental Protection, the Nevada Department of Wildlife, the U.S. Forest Service and the U.S. Bureau of Land Management.
Additionally, the Company received approval from Storey County to extend its landmark Special Use Permit (SUP) for mining and processing Lucerne for the maximum 20-year term, until 2034. The SUP enables continued environmental best practices, including concurrent reclamations, modern monitoring and restorations of one of Nevada’s most historic and progressive mining districts and funding for historic protection, preservation and restoration of the Comstock Lode’s historic mining landmarks and cultural assets in both Virginia City and Gold Hill, Nevada.

Exploration and Mine Development
The Company has identified many exploration targets on its land holdings in the Comstock District, but has focused, to date, on the Lucerne resource area (including surface and underground exploration) and the Dayton resource area. We are working to develop comprehensive exploration plans for the Dayton and Spring Valley groups, while our partner, Tonogold, advances the Lucerne.

Lucerne Resource Area

The Company has entered into a definitive agreement and received a $1 million non-refundable payment toward the sale of its Lucerne properties (~1200 acres) to Tonogold for $15 million in cash, relief of $8 million in future Northern Comstock (NCJV) lease and reclamation obligations, a permanent reduction of annual operating expenses by $1 million and a retained 1.5% net smelter return royalty on Lucerne. Upon closing, the company will transfer the ownership and/or control of the Lucerne properties, and related permits and retain ownership and/or control of the remaining land position in the Comstock district. The Company expects the transaction to close between March and May of this year. 

The Company and Tonogold also agreed that, upon the closing of the sale of the Lucerne mine properties, it will enter into a new Option Agreement to lease its permitted American Flat property, plant and equipment to Tonogold for crushing, leaching and processing material from the Lucerne mine.  If the option is exercised, Tonogold will pay the Company a rental fee of $1 million per year plus $1 per processed ton, in addition to all the costs of operating and maintaining the facility, up to and until the first $15 million in rental fees are paid, and then stepping down to $1 million per year and $0.50 per processed ton for the next $10 million paid to Comstock, with more favorable rates after the first $25 million of revenue is received.  Tonogold will reimburse American Flat expenses during the option life.

Upon closing, these agreements will replace the October 2017 Option agreement between the Company and Tonogold that currently allows Tonogold to earn a 51% interest in the Lucerne properties through its initial payments of $2.2 million in cash and current and future spending commitments totaling $20 million for exploration, engineering, permitting, and mine development.  The October 2017 agreement will remain in place until the sale of the Lucerne mine closes. Tonogold has met all the spending commitments to date and has been working with Mine Development Associates (“MDA”) of Reno to produce a new resource model and an NI 43-101 technical report on the Lucerne project.  Tonogold reimburse the Company $1.2 million during 2018, in addition to the $2 million received for the 2018 option payment.

The Company, upon closing, will also enter into a ten-year Mineral Lease for additional mineral properties in Storey County, Nevada, granting Tonogold the right to explore, develop and mine these properties.  Tonogold will assume approximately $100 thousand in annual costs for these properties and will assume work commitments totaling over $200 thousand in 2019.  Comstock will retain a 3% net smelter return royalty on these additional leased properties, which will be reduced to 1.5% one year after the commencement of mining operations.  The lease is renewable for an additional ten-year term.

Ownership or control of the Lucerne properties will transfer to Tonogold when Tonogold has paid the Company a total of $10 million in cash by closing, required on or before May 31, 2019. 

 Dayton Resource Area

The Company has retained the independent mining advisory firm of Behre Dolbear to produce a National Instrument 43-101 (“NI 43-101”) compliant technical report for the Dayton resource area, scheduled for completion in the second quarter of 2019, delayed from the first quarter of 2019, primarily because of the technical team’s commitment to completing the Tonogold transaction, in January, 2019.  The reporting scope includes an updated, robust mineral resource estimate, plans for expanding and further developing the mineral resource, and most of the prerequisite data for a subsequent Preliminary Economic Assessment (“PEA”). The PEA is the first major step in establishing economic feasibility for Dayton. 

The Company previously estimated a mineral resource for Dayton as part of a broader technical report for the Comstock Mine Project, but this new, Behre Dolbear commissioned technical report represents the first stand-alone NI 43-101 technical report to be published specifically for the Dayton resource area.  The technical staff is currently compiling a detailed, structural interpretation of the Dayton resource area, which will provide the framework for the new resource model.  The new information supports the development of a completely updated, three-dimensional model of the Dayton project. The interpretation is creating a list of highly prospective drill targets to further define and expand the mineral resource.

The Company previously announced assay results from a recently uncovered, high-grade shear zone in the Dayton adit. Systematic channel sampling revealed a 90.8-foot mineralized shear zone, starting 245 feet inside the adit. The results for the entire, 90.8 feet averaged 0.043 opt gold and 0.404 opt silver.  The zone included 7.5 feet averaging 0.121 opt gold and 0.753 opt silver. Multi-element assays confirmed the presence of previously-identified, elevated values for additional elements such as Cadmium, Selenium, and Tungsten.  Additional drilling is planned to determine the extents of this new mineralization.

In-house Dayton engineering and mine planning have resulted in profiling various economic shells with multiple cutoff grade scenarios.  Multiple layout plans for the mine and corresponding processing facilities have been conceptually developed and located on lands 100% privately held by the Company, thus simplifying and shortening the critical permitting chain.  The new technical report will provide not only a new resource estimate, but also a phased drilling and development plan for further defining and expanding the resource and ultimately developing a sustainable, profitable mine plan.

The Dayton mineralized material has been subjected to metallurgical testing by independent laboratories as well as in the Company’s on-site lab. Column tests were conducted by McClelland Laboratories in 2011, on medium-grade and high-grade composites from the Dayton Mine area, at 1” and ½” crush sizes.  The gold recovery after 154 days averaged 86.7% for gold and 47.4% for silver. The final report stated that at the end of the test, the curves had flattened, but recovery was still increasing. In early 2018, the Company’s in-house lab ran column tests on bulk samples from three different locations in the Dayton resource area. The recovery after 74 days averaged 84% for gold and 55% for silver. 

The Company is working with strategic partners to test alternative, greener technologies for processing the mineralized material from the Dayton resource area.  This includes trials by Cycladex, Inc., a strategic investee, in part funded by the National Science Foundation, for extensive testing of their patented, cycladextrin lixiviant, a potential alternative to traditional cyanide heap leaching.

The Company has also completed primary trials with Itronics, Inc., to test their KAM-Thio metallurgical recovery processes as an alternative or compliment to cyanide heap leaching for processing the Dayton mineralized material. Previous trials by Itronics showed promising results for recovering substantially all the residual silver from the previously leached material and is currently developing alternative process flow sheet and capital and operating costs estimates for processing the previously leached material.

The Company plans to conduct definition drilling and geotechnical core programs within the Dayton resource area and advance the Dayton resource area to full feasibility, with a production ready mine plan within the next two years. 

Spring Valley

Spring Valley is located south of the Dayton resource area and south and east of State Route 341. Ground magnetic geophysical surveys identified a linear anomalous corridor, defined by a series of relative magnetic lows indicating continued mineralization along strike, from the Dayton resource area. Limited drilling in Spring Valley has corroborated the existence of several mineralized zones. The expanded exploration program for Spring Valley will include phased drilling programs that will continue southerly from SR341 to the historic Daney mine site, representing a strike length of approximately 8,000 feet.

Pelen-Sutro Tunnel Company Acquisition

In January of 2018, the Company issued 1,475,410 shares of restricted common stock as initial payment to acquire 25% of the total membership interests of Pelen, LLC.  Pelen LLC is the 100% owner of the historic Sutro Tunnel Company that owns the Town of Sutro, the historic 6-mile Sutro Tunnel, the federal land grants and mining rights spanning 1,000 feet on each side of the 6-mile span, the rights to the tunnel’s water and the patented mining claims and private lands on Gold Hill.  The Company issued 1,758,181 additional shares in November, 2018, for the shortfall.

The purchase of the membership interests will close by December 31, 2019, once the seller of the membership interests has received total cash proceeds of at least $585,000 either through sale of the restricted common stock received or through additional cash payments made by the Company. If all of the shares of restricted common stock have been sold by the seller of the membership interests and the aggregate proceeds received are less than $585,000, then the Company is required to pay the shortfall in either additional shares of the Company’s common stock or cash, at the Company’s election.

Liquidity & Capital Resources

Total current assets are $8.6 million at December 31, 2018. The Company also has cash of $0.5 million at December 31, 2018.  This excludes the receipt of the $1 million, non-refundable deposit from Tonogold on January 25, 2019, for the non-refundable deposit towards the purchase of the Lucerne properties.

The new Tonogold agreement should provide $10 million in cash to the Company by March 31, 2019, or the right to deliver an additional $1 million non-refundable deposit by March 15, 2019, that extends the closing date to April 30, 2019, and additionally, the right to deliver another additional $1 million non-refundable deposit by April 12, 2019, that extends the closing date to May 31, 2019.  The current agreement does not allow for extensions of the closing past May 31, 2019.  The agreement also provides $5 million in cash on the first anniversary of closing, between March 31, 2020, thru May 31, 2020. The agreement also relieves the company of $8 million in long-term obligations, primarily for the NCJV annual mine claims and other Lucerne-specific reclamation liabilities and subsidizes an additional $1 million of annual costs (that totals approximately $2.2 million of operating savings per annum).

The Company’s current capital resources include this cash and other working capital resources, certain planned, non-mining asset sales with expected net proceeds of over $14 million. The Company received Board approval on January 30, 2018, to sell one non-mining asset, that is, the 98-acre certified industrial site and related water rights, and sell the purchase agreements and options on the 160 acres of land and water and sewer rights, all located in Silver Springs, NV, for $9.75 million plus a 3% future share of the profit.  The sales are to Silver Springs Capital Partners LLC, an opportunity zone fund and are expected to be finalized within the next 10 days and close between March and July, 2019. The Company expects to record a gain of approximately $5 million that will not be subject to federal taxes.

During the year ended December 31, 2018, the Company issued 21,216,856 shares of common stock through the Company’s equity programs and private placements. Gross proceeds from the issuance of shares totaled approximately $4.2 million at an average price per share of $0.20. Common shares outstanding at December 31, 2018, totaled 75,338,273.

Corporate and Outlook

We plan on closing the Tonogold transaction between March 31, and May 31, with proceeds of at least $9 million more upon closing.  We plan on finalizing the agreements for selling the non-mining asset and the options during the next few weeks and then closing these sales between March 31, and July 31, 2019, with proceeds of $9.75 million, net of closing expenses estimated at approximately $250k. We expect to have paid off the entirety of our outstanding debenture obligations, of approximately $8.2 million, plus accrued and other interest costs, during the second quarter of 2019, most likely by May 2019. Interest expense is expected to be eliminated by mid-year, with about $500k of actual interest savings realized during 2019. 

Our annual operating expenses are planned at $3.8 million, with approximately $1.2 million of that amount currently being reimbursed under the existing Tonogold Option.  We anticipate an additional $1 million of annualized savings, or $2.2 million annually, upon closing the new transaction, with about $1.7 million realized in 2019, or approximately $500k more operating savings realized during 2019, vs. 2018. 

Tonogold has announced that they plan on publishing an updated NI 43-101 compliant mineral resource estimate for the Lucerne Project during the first quarter of 2019.  We plan on publishing an NI 43-101 compliant mineral resource estimate for the Dayton Project during the second quarter of 2019.   The plan also includes expanding the current resource at the Dayton and continuing southerly into Spring Valley with incremental expansion programs that include exploration and definition drilling of targets identified by geophysical surveys during 2019.  We also plan on commencing permitting for Dayton in 2019.

 Conference Call

The Company will host a conference call today, February 5, 2019, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: 1-888-297-8935
Direct: 1-647-794-1827
Confirmation Code: 1295670
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

 About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is a leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
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Monday, January 28, 2019

Comstock Mining Announces Lucerne Mine Sale, Enables Immediate Value

Virginia City, NV (January 28, 2019) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today that it has entered into a definitive agreement, and received a $1 million non-refundable payment toward the sale of its Lucerne properties (~1200 acres) to Tonogold Resources, Inc. (“Tonogold”) (OTCMKTS: TNGL) for $15 million in cash, relief of $8 million in future lease and reclamation obligations, a permanent reduction of annual operating expenses by $1 million, and a retained 1.5% net smelter return royalty on the Lucerne properties. The company will transfer the ownership or control of the Lucerne properties and related permits, including the Storey County Special Use Permit for mining and processing that was recently extended to 2034.  The Company retains ownership and/or control of the remaining land position in the Comstock district, including but not limited to the Dayton, Spring Valley and the American Flat properties. The Company expects the transaction to close between March and May of this year. 

The Company and Tonogold also agreed that, upon the closing of the sale of the Lucerne mine properties, it will enter into a new Option Agreement to lease its permitted American Flat property, plant and equipment to Tonogold for crushing, leaching and processing material from the Lucerne mine.  If the option is exercised, Tonogold will pay the Company a rental fee of $1 million per year plus $1 per processed ton, in addition to all the costs of operating and maintaining the facility, up to and until the first $15 million in rental fees are paid, and then stepping down to $1 million per year and $0.50 per processed ton for the next $10 million paid to Comstock, with more favorable rates after the first $25 million of revenue is received.  Tonogold will reimburse American Flat expenses during the option life.

Strategic Partnership and Sale Highlights 

  • Provides a minimum of $10 million in cash to the Company in early 2019, eliminating debt;
  • Provides $5 million in cash to the Company in early 2020, accelerating Dayton developments;
  • Relieves $8 million in obligations, primarily for the Northern Comstock (NCJV) obligations;
  • Grants Tonogold an option to lease the American Flat property and equipment for:
    • $1 million per annum, plus $1 per ton for the first $15 million;
    • $1 million per annum, plus $0.50 per ton for the next $10 million ($25 million total); and
    • $0.25 per ton for all tons processed over $25 million in revenue.
  • Subsidizes $1.1 million per annum in American Flat related expense;
  • Retains a 1.5% Lucerne net smelter royalty; and
  • Eliminates our Debenture obligation and over $1 million in related, annual interest costs.  

Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “These agreements deliver $15 million in cash, eliminate our debenture and related annual interest, relieve us of the NCJV liability and permanently reduces our annual operating expenses by $2.2 million and annual interest costs by over $1 million.  These transactions position Lucerne and our partner, Tonogold, with a tremendous platform for developing and delivering mine production.  The most immediate value is almost $25 million between cash, NCJV relief, and expense reduction while retaining significant rental and royalty potential.”

Upon closing, these agreements will replace the October 2017 Option agreement between the Company and Tonogold that allowed Tonogold to earn a 51% interest in the Lucerne properties through its initial payments of $2.2 million in cash and current and future spending commitments totaling $20 million for exploration, engineering, permitting, and development.  The October 2017 agreement will remain in place until the sale of the Lucerne mine closes. Tonogold has met all of the spending commitments to date and has been working with Mine Development Associates (“MDA”) of Reno to produce a new resource model and a 43-101 technical report on the Lucerne project. 

Upon closing, the Company will also enter into a ten-year Mineral Lease for additional mineral properties in Storey County, Nevada, granting Tonogold the right to explore, develop and mine these properties.  Tonogold will assume approximately $100 thousand in annual costs for these properties and will assume work commitments totaling over $200 thousand in 2019.  Comstock will retain a 3% net smelter return royalty on these additional leased properties, which will be reduced to 1.5% one year after the commencement of mining operations.  The lease is renewable for an additional ten-year term.

Mr. De Gasperis added, “We have accelerated the potential exploration and development of the northern Comstock District targets, including the Occidental Lode, Yellow Jacket, Kentuck, and other historic, high-grade bonanza targets, with a retained royalty that aligns us financially and strategically, and enables drilling and development along the entire length of the Comstock Lode, from the northern bonanzas to the southernmost exploration targets.”

Ownership or control of the Lucerne properties will transfer to Tonogold when Tonogold has paid the Company a total of $10 million in cash by closing, required on or before May 30, 2019.  Tonogold will pay an additional $5 million by the first anniversary of the closing date. The $5 million payment will be secured by a deed of trust on the Lucerne properties. Alternatively, Tonogold has the option to pay a total of $11.5 million in cash and $1.75 million in stock by closing, with another $1.75 million payable in cash or stock by the first anniversary of the closing.

Tonogold is a U.S.-based mining company that is focused on advanced exploration properties in Nevada and Mexico. Tonogold’s team of mining executives and investors are building a portfolio of mineral properties that will give its investors a leveraged exposure to gold, silver and other minerals and metals.

Mr. Mark Ashley, CEO of Tonogold, commented, “Comstock Mining has done an excellent job consolidating a historic, world-class mining district and then entitling it for productive development.   This transaction provides an opportunity to own 100% of a known, permitted resource, and develop a significant, profitable and sustainable operation within the next three years. We expect to publish our NI 43-101 compliant technical report this quarter.”

Mr. De Gasperis concluded, “We are impressed with Tonogold’s diligence and ongoing mine development activities and have committed our experienced, technical team in support of their success.  Tonogold becomes a stronger, more strategic mining partner with the wherewithal to advance Lucerne back into production. This agreement delivers immediate value for our shareholders, with potentially significant rental and royalty income.  The agreement also simultaneously enables an aggressive northern region exploration program, while we fully focus on our southern, 100% owned Dayton and Spring Valley projects.”

The Company will host its customary, annual conference call on February 5, 2019, at 8:00 a.m. Pacific Time / 11:00 a.m. Eastern Time and provide a business update including the details of this transaction, and a review of the 2018 financial results. The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:         

North American Toll Free: 888-297-8935; Conference ID: 1295670

International: +1 647-794-1827; Conference ID: 1295670

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: future prices and sales of, and demand for, our products; profitability; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures (by the Company or other parties) and their impact on us; nature and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, sustainability, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.  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. 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 that 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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. We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Thursday, December 6, 2018

Comstock Mining Receives Landmark Permit Extension;
Unanimous Approval for 20-Year Permit Period

Virginia City, NV (December 6, 2018) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE American: LODE) announced today that it received unanimous approval from the Storey County Board of Commissioners to extend its landmark Special Use Permit for mining and processing for the Lucerne Mine Project  for the maximum allowable, 20-year term, extending the original 10-year term and permit until September 2, 2034.   The full Board of County Commissioners was present and  voted unanimously to approve Comstock Mining’s application.  This permit represents one of the most significant, progressive and collaborative permit approvals in the Company’s history,  and its extension strengthens the foundation for the future growth of the Company and its partner in Lucerne’s development, Tonogold Resources Inc.

Comstock Mining applied for amendments to significantly extend the duration of the permitted and allowable uses for its entire Lucerne Mine Project, including the Lucerne Mine and resource area and the fully permitted American Flat processing area. The permit applies to both surface and underground mining, processing and milling, mine definition, exploration and development, and other ancillary uses with some of the more salient features highlighted below.

Strategic Permit Highlights

  • Permits over 1,200 acres, allowing for substantial expansion of mining and processing.
  • Permits over 400 acres to the south and west of the existing processing facility in American Flat.
  • Allows for ongoing mine definition and exploration for the assessment of mineral deposits, including their location, extent, depth and grade for the next phase of mine development.
  • Continues environmental best practices, including concurrent reclamations, modern monitoring and restorations of one of Nevada’s most historic and progressive mining districts.
  • Continues funding for historic protection, preservation and restoration of the Comstock Lode’s historic mining landmarks and cultural assets in both Virginia City and Gold Hill, Nevada.
  • Supports the ongoing development of the county’s significant mineral resources without impeding the growth of the tourism-based economy of the Comstock region.

Corrado De Gasperis, Executive Chairman and CEO commented, “The ongoing development of Lucerne, led by Tonogold, has been very thorough and diligent, especially in terms of resource development, enhanced focus on quality, mineable ounces and defining sustained economic feasibility. We and Tonogold can now invest, with even greater confidence, in responsible, economical mine development and plans for returning Lucerne back into production.” 

The Company and Tonogold have invested significant efforts and dollars in the redevelopment of gold and silver resources in the Lucerne Resource Area with a dedicated focus on enhanced economic feasibility.  Tonogold anticipates publishing an updated resource report within 4-6 weeks. 

Mr. De Gasperis concluded, “The extension of this permit is not only unprecedented in our Company’s history but an outstanding example of a true public-private partnership, focused on creating and sustaining a diverse Nevada economy.  Storey County has played a pivotal role in supporting responsible, sustainable, streamlined and profitable economic development by listening to, understanding and meeting the needs of the entire community.  We sincerely appreciate their confidence in us and the approval of a 20 year term.”

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, November 27, 2018

Comstock Mining Announces Update on Non-Mining Asset Sales

Virginia City, NV (November 27, 2018) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced progress on its non-mining asset sales. The sale of the Gold Hill Hotel, to a local, experienced hotelier remains on schedule for closing in December. The buyer completed the final walk through inspection of the property last week with no material issues noted. In addition, the Company has entered into discussion and negotiation with local investors for the sale of its non-mining assets located in Silver Springs, Nevada.  

Corrado De Gasperis, Executive Chairman and CEO commented, “The sale process for the Gold Hill Hotel has progressed without incident and we have and continue to be impressed by the professionalism, care and community involvement of the new owners and we warmly welcome them to the Comstock. We are also thrilled by the interest of Nevada-based investors who are focused on opportunity zone investments in Storey and Lyon counties.”

On November 23, the Company was notified by the agent of the buyer of the Daney Ranch, that the proposed buyer was opting to terminate its offer of $3.25 million, previously announced to close later this month. The Company will relist the property for $4 million this week. 

Mr. De Gasperis concluded, “Our non-mining land sales are progressing toward the goal of eliminating our debt, and we expect this to be completed in the first half of next year, and possibly sooner. We anticipate the principal amount of the company’s secured debenture at year end will be approximately $7.8 million , with $14 million of remaining non-mining asset sales to be completed in 2019.”

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, October 30, 2018

Comstock Mining Announces $4 million in Asset Sales, Third Quarter 2018 Results;
Advances Dayton Feasibility with 90+ Foot High-Grade Discovery

Virginia City, NV (October 30, 2018) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced selected unaudited financial results for the fiscal quarter ended September 30, 2018.

Third Quarter 2018 Selected Strategic and Operational Highlights 

  • Received the 2018 BLM Sustainable Mineral Development Award;
  • Progressed, through our arrangement with Tonogold, an updated resource estimate  for Lucerne ;
  • Progressed, with Behre Dolbear, an updated resource estimate for a new Dayton NI 43-101 report;
  • Uncovered a new, large, high-grade, mineralized shear-zone in the Dayton adit;
  • Discovered gold and silver averaging 0.043 and 0.404 ounces per ton, respectively, in this Dayton zone;
  • Accepted a $3.25 million cash offer on the Daney Ranch;
  • Completed diligence for the $0.75 million sale of the Gold Hill Hotel;
  • Proceeds from contracted real estate sales would reduce our debenture to $4.6 million, or over 45%;
  • Delivered virgin samples of higher-grade, mineralized material from Dayton for testing, to Itronics; and
  • Deferred the purchase of the Downtown Silver Springs property to March 2019.

Corrado De Gasperis, Executive Chairman and CEO of the Company, said, “The sale of the Daney Ranch and Gold Hill Hotel bring huge, tax-free gains, that significantly lowers our debt and focuses us solely on efficient exploration, development and expansion of our gold and silver mining assets and their potential values at a time when gold is finally creeping back into favor.” 

Third Quarter and YTD 2018 Selected Financial Highlights and Outlook

For both the three-month and nine-month periods ending September 30, 2018, costs were down significantly when compared with the prior period. For the three-months ended September 30, 2018, the Company reported a reduction of approximately $0.5 million, or 24%, when comparing to the comparable 2017 period. For the nine months ended September 30, 2018, the Company reported a reduction of approximately $1.7 million, or 23%, when compared to the same period in 2017, with approximately $1 million coming from Tonogold subsidies.  

The Company recorded a net loss for the third quarter of 2018 of $2.0 million or ($0.03) loss per share, as compared to a net loss of $2.5 million, or ($0.06) loss per share for the third quarter of 2017. The Company recorded a net loss for the 2018 year-to-date nine-month period of $6.9 million or ($0.13) loss per share, as compared to a net loss of $8.2 million, or ($0.21) loss per share for the 2017 nine-month period.

Mr. De Gasperis added, “Our year-to-date costs were down in nearly every category, with significant reductions in real estate, mine claims and costs and environmental. We continue to analyze opportunities for reducing costs and sharing risks with strategic partners in order to increase the effectiveness of our mine developments.” 

At September 30, 2018, the principal amount of the Company’s secured debenture was $8.4 million. Cash and cash equivalents at September 30, 2018, were $1.2 million. Proceeds during the fourth quarter of 2018, from real estate sales, would reduce the principal amount of our debenture by over 45%, or $4.6 million, and reduce 2019 interest expense by over $425,000 per annum.

Exploration and Mine Development - Lucerne Resource Area

The Company’s option agreement gives Tonogold the right to lead engineering, development, drilling and test-work, all towards the objectives of completing and publishing National Instrument 43-101 (“NI 43-101”) compliant technical resource and economic feasibility assessments and ultimately, to earn into a joint venture for the future development and mining of minerals from Lucerne.  Tonogold has retained the independent mining advisory firm of Mine Development Associates to publish the NI 43-101 technical reports for Lucerne, with the first technical report expected in the fourth quarter of 2018. Tonogold can earn a 51% interest in the Lucerne Property, by advancing the Lucerne exploration and development activities and making cumulative capital expenditures on the Lucerne Property of $7.0 million by October 3, 2019, (of which, approximately $3 million has been expended to date) and $20 million (inclusive of the initial $7 million requirement) by April 3, 2021.

For the nine and three-month periods ended September 30, 2018, the Company recognized $1.0 million and $0.7 million, respectively, in reimbursements from Tonogold, primarily for mine claims, mine development, environmental and permitting compliance for advancing the Lucerne Mine project.  

Dayton Resource Area

The Company recently sampled a newly recognized, mineralized, cross-cutting shear zone. The full extent of the shear zone has not yet been exposed but a sample of the material was fire assayed for gold and silver and discovered 3 feet of 0.246 ounces per ton (OPT) Gold and 3.553 OPT Silver.

The Company expanded its sampling and mapping to define the full extent of the shear zone, including a program that exposed a 90.8 foot (27.7m) mineralized shear zone, beginning at 245 feet (74.7m) inside the Dayton adit.  The program included the collection of continuous channel samples along consistent intervals.  Visual changes in mineralogy and rock type determined the sample boundaries, with three-foot intervals. All samples were fire-assayed for gold and silver, and then further analyzed for 23 additional elements using Inductively Coupled Plasma – Atomic Emission Spectroscopy . The results for the entire zone averaged 0.043 OPT gold (1.47g/t) and 0.404 OPT silver (13.8g/t), including 7.5 feet averaging 0.121 OPT gold (4.14g/t) and 0.753 OPT silver (25.8g/t).  The previous identification of elevated values for Molybdenum, Cadmium, Selenium, and Tungsten were also confirmed.

The Company has retained the independent mining advisory firm of Behre Dolbear to produce a separate NI 43-101 compliant technical report for the Dayton resource area, anticipated during the first quarter of 2019.  This first report will provide an updated resource estimate and support the subsequent scope of publishing an NI 43-101 compliant Preliminary Economic Assessment (“PEA”) for the Dayton project.

Environmental Excellence and Clean Technologies

The Company is an established leader in sustainable, responsible mining and recently received the 2018 Sustainable Mineral Development Award from the United States Bureau of Land Management (BLM).  In 2017 and 2015, the Company also received Nevada’s Excellence in Reclamation Award, voted unanimously by the Nevada Division of Minerals and Environmental Protection, Department of Wildlife and the U.S. Forest Service and BLM.

Mr. De Gasperis added, “Winning National and Nevada-wide recognition in three of the past four years establishes a culture supporting the highest-quality environmental and social processes.  We are reaching even higher with our clean technologies partners to develop new technologies for breakthrough renewable, zero waste solutions.”

Our collaboration with Itronics, Inc., (OTC: ITRO) has expanded into sampling higher-grade Dayton materials.  Itronics previously reported positive results from testing leached material with its proprietary KAM-Thio solution. The previously-leached test results demonstrated that the residual silver, gold, base metals, and cyanide can be recovered, creating an environmentally attractive process. While extracting metals in the test process, the KAM-Thio residual solution was substantially regenerating during process, thereby reducing the net consumption and creating a potentially compelling economic solution.  Test results also showed that the cyanide residual in the cyanide leached material was removed by the new leaching process, neutralizing the solution to drinking water standards. These results could dramatically reduce reclamation costs and associated bonding, while adding the prospect of alternative uses for the materials.  The Company delivered the new samples of higher-grade mineralized material with two objectives: first, to model the same process flow sheet that they developed for processing the Company’s previously leached material, and second, to test the ability of the KAM-Thio liquid to recover gold as effectively as silver.  The Company will report results as they become available.

Liquidity & Capital Resources
During October, 2018, the Company reached a new agreement to sell the Daney Ranch for $3.25 million, subject to escrow and customary closing conditions, with an anticipated close on November 30, 2018.  The Company also has an agreement to sell the Gold Hill Hotel to an experienced boutique hotelier, for $0.75 million with closing anticipated to occur by December 31, 2018.  Proceeds of almost $4 million from these two real estate sales would reduce the principal amount of the debenture to approximately $4.6 million, or over 45%.

During October, 2018, the Company received $546,107 from Tonogold in reimbursement for expenses for the month of August 2018, increasing the total received from Tonogold since the inception of the Option agreement to $3.9 million, including $2.2 million in option payments and $1.7 million in reimbursements.  For fiscal year 2018, we have received $2.0 million in option payments and $1.0 million in reimbursements, or a total of $3.0 million. 
Common shares outstanding at September 30, 2018, totaled 70,852,819. At quarter end June 30, 2018, the Company’s shares outstanding were 53,834,285. During the quarter, the Company issued 9,333,000 shares of common stock through the Company’s equity purchase agreement and 2,727,273 shares of common shares in a private placement.  Gross proceeds from the issuance of those shares totaled approximately $2.0 million at an average price per share of $0.165. In August 2018, the Company issued 2,774,490 shares of Common Stock with a fair value of $482,500 as payment for the annual contribution to Northern Comstock, LLC.

The Company also has cash and cash equivalents of $1.2 million at September 30, 2018.

Corporate and Outlook

We understand that Tonogold plans on publishing an updated NI 43-101 compliant mineral resource estimate for the Lucerne Project during the fourth quarter of 2018.  We plan on publishing an NI 43-101 compliant mineral resource estimate for the Dayton Project during the first quarter of 2019.   The plan also includes expanding the current resource at the Dayton and continuing southerly into Spring Valley with incremental expansion programs that include exploration and definition drilling of targets identified by geophysical surveys during 2019.

During, 2018, the Company amended its agreement for the purchase of 100% of the membership interests of Downtown Silver Springs, LLC (“DTSS”). DTSS holds an option for the purchase of approximately 160 acres of centrally located land in Silver Springs, Nevada, and separately, holds an option to purchase 350 units of water rights (equaling 392 acre-feet) and 200 units of sewer rights.  On October 1, 2018, the Company paid $250,000 toward the remaining $2.7 million purchase price for the land and extended the options for the land, water and sewer rights out to March 31, 2019. The Company plans on selling its 98-acre industrial property and the option on the 160-acre commercial property owned by DTSS in the first half of 2019, eliminating the remaining debt, funding operations and further strengthening its balance sheet.

Mr. De Gasperis concluded, “We are now monetizing our non-mining assets at significant, tax-free gains, planning to pay down our debenture, and positioning the Company for accelerated mineral property and resource growth with the accretive development of our mining properties. Our strategic objective is to position the Company to take advantage of increasing precious metal prices and maximize the value to our shareholders.”

Conference Call

The Company will host a conference call today, October 30, 2018, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: 1-800-682-0995
Direct: 1-334-323-0509
Confirmation Code: 5181626
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is a leader in sustainable, responsible mining. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.

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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; 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 sales investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

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.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
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