Comstock becomes fully fledged recycler, clean energy company after selling mine assets to Mackay
NYSE-listed specialised metals recycler Comstock has closed the sale of all its mining assets in the historic Comstock Lode district of Nevada to TSX-V-listed Mackay Gold & Silver Corporation subsidiary Mackay Precious Metals for $45-million.
Comstock has received $20-million of the consideration in cash and two-million common shares in Mackay Gold & Silver, valued at about $4.5-million, to which Comstock expects to record a gain in a range of about $10-million to $12-million. Another $7-million payment is due within 18 months.
The transaction includes the sale of four of Comstock's mining subsidiaries - Comstock Mining, Comstock Processing, Comstock Exploration and Development, and Comstock Real Estate - including all mining claims, town lots, processing facilities, operating permits and water rights.
Mackay Gold & Silver has assumed all of the reclamation obligations and other liabilities associated with the sold entities.
Comstock retains a 1.5% net smelter return royalty from the sales of silver, gold and all other valuable minerals and products extracted from the sold properties. Mackay Gold & Silver does have the option to buy out the royalty for $3.5-million in cash.
The transaction completes a critical objective for Comstock as it transforms from a hard rock junior mining company to a global renewable metals and materials company.
The deal has enhanced the company's balance sheet liquidity and reduces companywide operating costs, while realising accretive value for shareholders.
"Closing this transaction simplifies our business, focuses our capacity and reduces costs while retaining upside through both equity in Mackay Gold & Silver and future gold and silver net smelter return royalties," says Comstock CEO Corrado de Gasperis.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
The Aluminium Federation of South Africa (AFSA), is the voice of the South African aluminium industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
