Comstock Mining Inc. (the “Company”) (NYSE American: LODE)
announced that it has contracted to lease and sell one of its three
major non-mining assets, the Daney Ranch property, located near
Dayton, Nevada, for a purchase price of at least $2.7 million. The
Company entered into an agreement with the owner of an established
exploration and mine development drilling services company, to
lease the facility for $9,000 per month, for up to 24 months, and
the assumption of all maintenance, upgrades and repairs as the
responsibility of the lessor. If the transaction closes within two
years, the lease payments are creditable to the purchase price. If
not, the lease payments increase to $10,000 for a third year, and
prior payments no longer apply to the $2.7 million purchase price.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “We
now have all three major non-mining assets under contract with
contracted sales prices totaling nearly $14 million. This
transaction validates our assessment of the land values, while
providing monthly cash income, reducing monthly expenses and
freeing maintenance resources as we ramp up MCU. We have also
created a truly strategic and local drilling partner for us,
enhancing the liquidity, speed and likelihood of both closing this
favorable transaction, and commencing exploration and development
drilling on our Dayton Resource.”
The Daney Ranch is a 225-acre ranch in Dayton, NV, bordering the
Company’s historic Daney patent, at the southern end of the
Company’s three-mile contiguous mineralized trend starting at the
Dayton resource area, near Silver City, down through the southern
tip of the Spring Valley exploration targets.
The Company recently announced its plans to conduct airborne
geophysical surveys of its wholly owned Dayton resource area and
adjacent Spring Valley exploration targets. Geotech expects to
begin flying its proprietary Versatile Time-Domain Electromagnetic
(“VTEM”) geophysical system later next week and plans to deliver
three-dimensional interpreted results by mid-October. The results
will greatly increase the Company’s understanding of the Dayton
resource area and Spring Valley resource expansion potential, along
with the Company’s other exploration targets in Lyon County.
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The Company’s technical staff is compiling a detailed structural
interpretation of the Dayton resource area that is providing the
framework for a completely new resource model. The detailed
interpretation is leading to a list of highly prospective drill
targets to further define and expand the mineral resource. Based on
the promising findings of this recent interpretive work, the
Company made the decision to complete a property-wide geophysical
program and based on the results, finalize the targets for an
upcoming planned drill program. Earlier this year, the Company
enhanced its land position in Spring Valley by exercising its
option and purchasing seven unpatented lode mining claims in Spring
Valley, for a total of $100,000.
The results of previous drilling at the Dayton resource area and
the current, detailed geological interpretation will enable the
geophysical data to be calibrated with and provide interpretation
for the Company’s other exploration targets in Lyon County,
including the Oest, Amazon, and Daney mine areas, and Montezuma
Ridge, the Spring Valley and Gold Canyon placer areas.
The Company’s Dayton and Spring Valley targets are located in
Lyon County, Nevada, approximately six miles south of Virginia
City, and just west and south of Silver City, NV, and include the
historic Dayton, Kossuth, Alhambra, Gennessee, Dondero, and Daney
mineral patents, together representing the Company’s top
exploration and development target. The Spring Valley mineralized
structures lie mostly concealed beneath a veneer of sediment
gravels and the volcanic host rocks and the structural controls of
the mineralization for the Dayton resource area that are known to
continue south into Spring Valley.
The Company plans to advance the Dayton resource area to full
feasibility, towards a production ready mine plan. The plan
includes expanding the current resource estimate for the Dayton and
continuing southerly into Spring Valley, with incremental expansion
programs that include exploration and definition drilling of
targets identified by the prior conventional, RC and diamond core
drill programs, that will be both refined and better prioritized
based on these new IP and resistivity geophysical survey
results.
Mr. De Gasperis concluded, “The strategic relationship with a
locally positioned drilling services company, and the efficiencies
and liquidity benefits associated with these partnerships, strongly
support advancing these geological developments toward the
publication of our first S-K 1300 compliant, technical report for
the Dayton resource area and Spring Valley exploration targets. The
new technical report will not only provide a new resource estimate,
but a phased drilling plan for further defining and expanding the
resource for sustainable, profitable mining.”
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 that is currently
commercializing environment-enhancing, precious-metal-based
technologies, products and processes for precious metal recovery.
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 Company’s goal is to grow per-share value by
commercializing environment-enhancing, precious-metal-based
products and processes that generate predictable cash flow
(throughput) and increase the long-term enterprise value of our
northern Nevada based platform. 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: consummation of all pending transactions;
project, asset or Company valuations; future industry market
conditions; future explorations, acquisitions, investments and
asset sales; future performance of and closings under various
agreements; future changes in our exploration activities; future
estimated mineral resources; future prices and sales of, and demand
for, our products; future impacts of land entitlements and uses;
future permitting activities and needs therefor; future production
capacity and operations; future operating and overhead costs;
future capital expenditures and their impact on us; future impacts
of operational and management changes (including changes in the
board of directors); future changes in business strategies,
planning and tactics and impacts of recent or future changes;
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; the nature and timing
of and accounting for restructuring charges and derivative
liabilities and the impact thereof; contingencies; future
environmental compliance and changes in the regulatory environment;
future offerings of equity or debt securities; the possible
redemption of debentures 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 our filings
with the SEC and the following: counterparty risks; capital
markets’ valuation and pricing risks; 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
title to properties; potential dilution to our stockholders from
our stock issuances and 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 businesses;
permitting constraints or delays; decisions regarding business
opportunities that may be presented to, or pursued by, us or
others; the impact of, or the non-performance by parties under
agreements relating to, acquisitions, joint ventures, strategic
alliances, business combinations, asset sales, leases, options and
investments to which we may be party; changes in the United States
or other monetary or fiscal policies or regulations; interruptions
in 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 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 or others; assertion of claims, lawsuits and
proceedings; 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, the
solicitation of an offer to buy or a recommendation with respect to
any securities of the Company, the fund or any other issuer.
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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