Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”)
today announced its acquisition of an additional 3,129,081 common
shares in LINICO Corporation (“LiNiCo”) from LiNiCo’s founder,
Michael Vogel, in exchange for 3,500,000 restricted Comstock common
shares, and acquired an additional 4,075 Series A Preferred shares,
thereby increasing Comstock’s overall ownership to approximately
90% from approximately 45% of LiNiCo.
LiNiCo is an emerging leader in the production
of electrification products, including lithium carbonate and
graphite from recycled lithium-ion batteries (“LIB”) with its
proprietary extraction technologies. LiNiCo’s first
state-of-the-art production facility is currently being retrofitted
and scheduled to commence initial production with a feedstock
crushing capacity of over 35,000 tons per year during the second
half 2022, with the ultimate facility capacity designed and
permitted for over 100,000 tons per year.
“Increasing our investment in LiNiCo was a
natural extension of our plan to build high-cash generating
processes that tap into massive markets and decarbonize the supply
chains of increasingly scarce natural resources,” said Corrado De
Gasperis, Comstock’s Executive Chairman and Chief Executive
Officer. “We believe that LiNiCo’s pioneering extraction
technologies will quickly prove to be the best, most sustainable,
and most valuable process for the production of lithium and other
electrification products from both recycled batteries and virgin
natural resources. Increasing our stake to approximately 90% will
allow us to fully consolidate and control LiNiCo’s business plans,
revenue and earnings, while enabling our shareholders to
participate in the expected significant positive impact of LiNiCo’s
business and related proprietary technologies on Comstock’s
valuation.”
According to International Energy Agency
(“IEA”), there were more than 10 million electric vehicles (“EVs”)
on the road at the end of 2020, with new EV registrations
increasing by 41% over 2019 and another 140% during the first
quarter of 2021 as compared to the same period in 2020. Meeting the
increased EV demand is estimated to require about five times more
lithium carbonate equivalent (“LCE”) than the entire lithium mining
industry produces today. Miners and manufacturers can scale up to
meet that demand, however, according to a January 2021 USGS mineral
commodity summary, there are only about 86 million tons of
identified lithium reserves worldwide, and EV batteries are
typically landfilled after eight to ten years of use. A report
published in 2021 by Lux Research estimated that more than 140
gigawatt-hours of LIBs will reach end of life by 2035, an eightfold
increase over the end-of-life estimates for 2020, making quality
LIB recycling vital to global electrification initiatives.
The remaining 10% of LiNiCo is owned by Aqua
Metals Inc. (NASDAQ: AQMS), a cleantech innovator focused on
environmentally closed-loop battery recycling. Comstock and Aqua
Metals announced the execution of a collaboration agreement to
accelerate decarbonization by producing renewable electrification
products that support the increasingly high demand for EVs. LiNiCo
would use this technology to process secondary metal concentrates
into high-purity nickel, cobalt, and other metals.
“LiNiCo’s partnerships and propriety
technologies differentiate us from our peers by enabling the
up-front extraction of lithium and the direct refining of nickel,
cobalt, and other metals. We are looking forward to incorporating
these new processes into our facility and offering best-in-class,
sustainable electrification products at a fraction of the costs,”
concluded Mr. De Gasperis.
About Comstock Mining Inc.
Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging
innovator and leader in the sustainable extraction, valorization,
and production of scarce natural resources, with a focus on high
value strategic materials that are essential to meeting the rapidly
increasing global demand for clean renewable energy,
carbon-neutrality, and natural products. To learn more, please
visit www.comstockmining.com.
Forward-Looking StatementsThis
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 operating margins; available resources;
environmental conservation outcomes; 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; asset sales 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 89440ComstockMining.com |
Corrado De GasperisExecutive Chairman & CEOTel (775)
847-4755degasperis@comstockmining.com |
Zach SpencerDirector of External RelationsTel (775) 847-5272
Ext.151questions@comstockmining.com |
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