Comstock Mining Reduces Debt by $700 Thousand; Receives Full $1 Million in Non-refundable Deposits
09 July 2019 - 8:45PM
Comstock Mining Inc. (“Comstock” or “the Company”) (NYSE American:
LODE) today announced that Tonogold Resources, Inc. (“Tonogold”)
(OTCMKTS: TNGL) paid the additional cash deposits totaling $400
thousand toward purchasing the Company’s Lucerne properties,
bringing the payments to the full $1 million for extending the
close until July 26, 2019.
On January 24, 2019, the Company entered into an agreement with
Tonogold to sell its Lucerne properties for $15 million ($11.5
million in cash and $3.5 million in convertible preferred stock).
The $1 million in recent cash payments brings the total
non-refundable cash payments up to $3.35 million. The Company has
also received the $3.5 million in a non-refundable stock payment
towards the purchase. Mr. Corrado De Gasperis, Executive Chairman
and CEO, said, “Tonogold’s ongoing payments reflect their
commitment for advancing the Lucerne project back into production.
We have now received nearly $7 million in cash and stock payments
towards the purchase price. We look forward to closing this
transaction this summer and accelerating our strategic growth
plans.” This deposit, coupled with previous deposits, resulted in
the paydown of a total $700 thousand of Debenture principal in
early July, reducing the Debenture balance almost 40% from the
original issuance, to under $6.5 million. Tonogold retains
the option to extend the closing one additional month, until August
30, 2019, by paying an additional, $1 million non-refundable cash
deposit (or $500 thousand cash applicable to the purchase price
plus $500 thousand of convertible preferred stock not applicable to
the purchase price). Tonogold is also required to reimburse the
Company for the interest expense on the Debenture, and for other
operating expenses from the platform, since June 1, 2019. Mr.
De Gasperis concluded, “We are steadily progressing a
transformation that best positions our northern Nevada platform for
generating revenue and cash profits, from Lucerne with Tonogold,
from mercury remediation with Mercury Clean Up LLC, and from our
own 100% Dayton mineral resource, among other initiatives in our
pipeline. We have dramatically reduced our debt while
expanding our properties, platform and opportunities for this new
growth.” 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.
Contact information: Comstock Mining, Inc. P.O. Box 1118
Virginia City, NV 89440 ComstockMining.com Corrado De Gasperis
Executive Chairman & CEO Tel (775) 847-4755
degasperis@comstockmining.com Zach Spencer Director of External
Relations Tel (775) 847-5272
ext.151questions@comstockmining.com
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