NYSE-listed precious metals miner Comstock Mining on Thursday announced the sale of its two properties in Silver Springs and water rights for about $10-million.
The sale of the nonmining assets will allow Comstock to eliminate its remaining debt of $4.9-million and fund its planned growth initiatives.
The closing date for these sales is January 31.
The Nevada-based silver and gold miner reported that it had made progress on its transformational strategy that was announced last year. The strategy relates to precious metal exploration, resource development, economic feasibility assessments, mineral production and ventures around better technology.
So far, the company has enabled the strategic focus with a legal entity realignment that is facilitating the disposition of non-mining assets, while positioning the development of its wholly-owned mineral properties. These include Comstock’s Dayton Resource Area and Spring Valley exploration targets.
Comstock is also progressing a number of highly focused and strategic transactions, ventures and partnerships that facilitate the development of other mineral properties. For example, the company’s Lucerne and other mineral properties located in Storey county are advancing, while the company is pursuing new ventures, such as Mercury Clean Up and Sierra Springs Opportunity Fund (SSOF).
SSOF capitalises on the extraordinary growth of high-tech industries in northern Nevada. Comstock says its ownership of SSOF, on a fully diluted basis, will be about 9%.
Comstock’s subsidiaries have already successfully acquired the Silver Springs Regional Airport and an adjacent 180 000 ft2 manufacturing facility called Sierra Clean Processing.
CEO and chairperson Corrado De Gaspris said the company’s realignment and transformation has positioned it to first unlock unrealised shareholder value and then create and deliver new value from precious metal-based innovations and developments.
Meanwhile, Tonogold now has a 50% membership interest in Comstock, with its convertible preferred stock valued at about $9-million.
The company expects the transaction to deliver more than $24-million of tangible value to Comstock. Comstock may benefit from an additional $20-million in value, based on Tonogold’s final mine plans.
Comstock started 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 to evaluate and acquire properties inside and outside the district.