Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”)
today announced transactions securing the rights to a majority
equity stake in LINICO Corporation (“LiNiCo”), a lithium-ion
battery (“LIB”) recycling company who recently acquired a
state-of-the-art battery metal recycling facility from Aqua Metals,
Inc. (“Aqua Metals”) located in the Tahoe Reno Industrial (“TRI”)
Center in Storey County, Nevada. The Company will pay $4,500,000 in
cash and 3,000,000 shares of its restricted common stock,
representing up to $10,750,000 in consideration for up to a 64%
ownership stake in LiNiCo. Aqua Metals is investing $2,000,000 for
a 10% stake in LiNiCo.
LiNiCo will use the proceeds to increase its
direct strategic investment in Green Li-ion Pte, Ltd. (“Green
Li-ion”), purchase Green Li-ion’s patented process equipment, with
exclusive rights for the U.S. market, enabling the production of
99.9% pure lithium-ion cathodes. LiNiCo’s Chief Executive Officer
and Founder, Michael Vogel commented, “Our agreements accelerate
the race towards reducing carbon emissions by valorizing critical
metals and supporting the increasingly high demand for electric
vehicles (“EVs”). Aligning ourselves with Comstock, Green Li-ion
and Aqua Metals creates a unique ecosystem of complimentary
companies.”
LiNiCo’s facility was designed for, and
perfectly situated to, receive, crush, and separate battery
materials into black mass. Green Li-ion’s technology has been
proven to convert black mass into rejuvenated, high purity, battery
grade metals and essentially pure cathodes for a fraction of the
cost and time of conventional solutions.
Extraordinary Growth
Lithium-ion battery production capacity has
increased tenfold in the past decade. According to a recent report
from the International Energy Agency (“IEA”), demand for lithium is
expected to significantly increase to fill global demand for
electric vehicles (“EVs”). ARK Invest recently concluded that EV
sales will increase to about 40% of global auto sales within five
to six years. Tesla CEO Elon Musk recently provided a similar
estimate, tweeting his view that the industry could produce 30
million EVs per year by 2027.
Hitting that output will require about 1.8
million tons per year of lithium carbonate equivalent (“LCE”), or
about five times more than the entire lithium mining industry
produces today, and fifteen times the total LCE used in new EVs in
2020. The miners and manufacturers can scale up to meet that
demand, however, according to a January 2020 USGS mineral commodity
summary, there are only about 80 million tons of identified lithium
resources worldwide, and EV batteries are typically landfilled
after eight to ten years of use. A recent report by independent
analysts, Yole Développement estimated that expired LIBs are
landfilled annually with over $300 million in strategic metals, an
amount estimated to grow to over $1.2 billion in strategic metals
by 2025 and $24 billion by 2040.
Creating Closed Loop Systems for Clean Energy
with Climate Smart Mining
“Continued advances in energy storage are
inevitable, but no resource is infinite, and most of that lithium
will need to be recovered and reused at some point,” said Corrado
De Gasperis, Comstock’s Executive Chairman and CEO. “We see spent
lithium-ion batteries as a potent industrial mineral, and – as with
any resource, we need the right team, technology, and
infrastructure to extract and process it. This transaction
assembles all three into an ecosystem of aligned partners,
operating systemically on a common goal.”
LiNiCo plans to commence production later this
year, building toward cathode production capacity of about 10,000
tons per year. At just 33% of that rate and 60% of applicable
commodity prices, the LiNiCo facility should generate more than
$100 million in sales with pre-tax operating income margins
exceeding 30%, adding 40 good paying Nevada jobs and making a
landmark contribution to Comstock’s Environmental, Social and
Corporate Governance (“ESG”), Product and Process Stewardship and
Climate Smart Mining goals.
Mr. De Gasperis concluded, “We believe that this
acquisition builds on Comstock’s strategy for developing high-cash
generating, conservation-based processes that valorize these
increasingly strategic, critical resources. We have now diversified
into the critical electrification metals, including silver,
lithium, nickel and cobalt, complementing and expanding on our
existing precious metal processing competencies. Our objective is
to renew these scarce resources while driving sustained value
growth for all of our stakeholders – financial, natural and social.
We are passionate stewards of our environment, developing closed
loop projects that offset the environmental and social costs of
conventional mining practices.”
Remarkably, each ton of conventionally mined
lithium extraction can require nearly 2,000 tons of water
utilization whereas LiNiCo’s process and the existing water
recycling system in LiNiCo’s state-of-the art facility only
consumes a tiny fraction of that amount to produce the same output,
significantly enhancing conservation.
LiNiCo’s battery recycling facility is located
in the immediate vicinity of Tesla’s Gigafactory #1 in TRI
Center.
A photo accompanying this announcement is available at:
https://www.comstockmining.com/press-releases/comstock-secures…nergy-transition/
About LINICO Corporation
(“LiNiCo”) LINICO Corporation is a cleantech startup, with
a state-of-the art battery metals recycling facility focused on
commercializing economically viable and environmentally sustainable
technologies for lithium-ion battery recycling. LiNiCo’s goal is to
alleviate the global reliance on harmful mining activities that are
used in the production of critical metals, to support the
increasingly high demand and shortage of these critical metals, to
close-the-loop on sustainable practices for end-of-life lithium-ion
batteries and to support a clean energy economy. To learn more,
please visit www.linico.io.
About Green Li-Ion Pte, Ltd.
Green Li-Ion solves the existential risk to the precious metals
industry and the environment. With patented deep technology that is
cleaner, faster and four times more profitable than current lithium
ion battery recycling. Green Li-Ion technology is the only closed
loop technology to fully rejuvenate the lithium ion battery cathode
for the circular economy. Green Li-Ion's Multi-Cathode technology
and GLMC-1 control unit enhances current lithium ion battery
recycling lines to produce 99.9% pure cathodes. To learn more
please visit www.greenli-ion.com.
About Aqua Metals, Inc. Aqua
Metals, Inc. is a leading innovator in lead battery metal recycling
with its patented hydrometallurgical AquaRefining™ technology. The
modular Aqualyzers™ cleanly generate ultra-pure metal one atom at a
time, closing the sustainability loop for the rapidly growing
energy storage economy. Aqua Metals’ offerings include equipment
supply, services and licensing of the AquaRefining technology to
recyclers across the globe. Aqua Metals is based in McCarran,
Nevada. To learn more, please visit www.aquametals.com.
About Comstock Mining Inc.
Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging
leader in sustainable mineral development and production of
environment-enhancing, increasingly scarce strategic and precious
metals, focused on conservation-based waste, high-value,
cash-generating, mineral and metals essential to meeting the
rapidly increasing demand for clean energy technologies. The
Company has extensive, contiguous property in the historic,
world-class Comstock and Silver City mining districts
(collectively, the “Comstock District”) with fully permitted,
metallurgical labs and an operational, mineral processing and
beneficiation platform that includes a growing portfolio of mercury
remediation, gold and silver extraction facilities. 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: |
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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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