Comstock Mining Inc. (the “Company”) (NYSE American: LODE)
announced selected strategic and financial updates (unaudited) for
the second quarter and year to date:
Selected Strategic Highlights
- Investments in Mercury Clean Up LLC (“MCU”) increased to $1.75
million in cash and stock to date with the Comstock mercury
remediation system completed (pictures below) and shipping this
week;
- Committed to investing in MCU Philippines Inc. after MCU agreed
to a definitive joint venture agreement with Clean Ore Solutions
OPC, to partner in a landmark mercury remediation project in the
Philippines;
- Committed up to $3 million in debt and equity investments, for
62.5% of the newly created MCU Philippines Inc., with the new
mercury remediation system ready for shipment (pictures below);
and
- Consummated the April acquisition of 25% of PELEN LLC, owner of
the historic Sutro Tunnel Company.
Selected Financial
Highlights (Unaudited)
- Recorded a gain of $1.6 million on the increased value of our
equity investment in Tonogold, now valued at over $10.4 million at
June 30, 2020, as compared to $8.8 million at March 31, 2020;
- Recorded positive net income for the three months ended June
30, 2020, primarily driven by the gains resulting from the
increased value of Tonogold assets owned by us;
- Received a $0.5 million early payment in June 2020, on
obligations owed from Tonogold and reduced our Senior Debt
principal down to $4.1 million in mid-July, down from $4.5 million
at June 30, 2020;
- Raised $1.25 million for the initial mercury remediation growth
investment in the Philippines; and
- Cash and cash equivalents at June 30, 2020, were
approximately $1.0 million.
Mr. Corrado DeGasperis, Executive Chairman and CEO stated, “We
are now growing our productive assets as we deploy our first two
mercury remediation operating systems. We look forward to
landing the MCU – Comstock system within a week, to commence
testing within the boundaries of the Carson River Mercury Superfund
Site (“CRMSS”) and shipping the first international unit to the
Philippines later this month for deployment in the Davao D’Oro
Province, on the Naboc River. A second mercury remediation
system is scheduled for delivery later this year. Overall, our
costs are down, our profit is up and we are investing in real,
clean, precious-metal based growth.”
Comstock Mining’s Corporate Growth The Company
has enacted its Board-approved transformational strategic plan,
focused on high-value, cash-generating, precious metal-based
activities, (the “Strategic Focus”) including, but not limited to,
environmentally friendly, and economically enhancing mining
technologies, like mercury remediation. Our goal is to deliver over
$500 million of value from our existing assets and the
commercialization of these environmental mining technologies,
partnerships and ventures. Comstock Mining Inc. is the parent
company that wholly owns the realigned subsidiaries and is
expanding its mercury and royalty portfolios. We believe that our
resource-based technology, properties, plant and equipment and
existing gold and silver resources are deeply undervalued.
Our realignment repositions the Company for clean, sustainable
growth, and we are now growing.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8c16d548-fffa-4688-84cc-5b944af659f0
Comstock Processing LLC owns the American Flat processing
facility and represents the main platform for commercializing
environmentally friendly, and economically enhancing mining
technologies, including mercury. Comstock Northern Exploration LLC
owns or controls the remaining Storey County exploration targets,
primarily east of and north of the Lucerne properties. Comstock
Exploration & Development LLC owns or controls the Lyon County
mining claims and exploration targets, including the Dayton and
Spring Valley development targets. We are also reorganizing our
growing portfolio of precious metal royalties into Comstock Royalty
Holdings LLC.
Mr. DeGasperis continued, “The realignment allows a more
systemic and focused, partnered approach, enabling transactions
that increase value-creating opportunities and accelerate our
growth. Since the realignment, we have expanded our partnership
with Tonogold and MCU. The MCU investments are accretive,
with fast return of invested capital and faster, long-lived cash
flows. We are working closely with all our partners to grow
value.”
Comstock Mercury Remediation System and the American
Flat Processing Platform
Our American Flat processing platform is fully permitted, and
the infrastructure has been prepared for the delivery of the brand
new MCU mercury remediation system. The system is scheduled to ship
this week. The Company is collaborating with U.S. and Nevada
regulators and policy makers for maximum social and environmental
impact.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f01e62e2-f5fd-49cf-91d4-aeadba32743f
The Company and MCU have prepared the site for delivery of this
impressive aggregation of state-of-the-art alluvial mining
technologies, operating as one, fully-integrated
mercury-remediation system. The system, which is mobile, stands
almost twenty feet high and comes with a specialized, mobile,
metallurgic laboratory and an integrated Dissolved Air Flotation
(DAF) system, one of the most effective, mobile
wastewater reuse operations.
MCU’s State-of-the-Art Mercury Remediation System
manufactured by Oro Industries ready for the
Philippines
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/18700134-7779-4d1d-9488-ae255d851b7e
Oro Industries has manufactured this second, state-of-the-art
mercury remediation system for our newly created MCU Philippines
Inc. (“MCU-P”) entity, in partnership with our partner Clean Ore
Solutions (“COS”), who we have a Joint Venture with to establish
Clean Mineral Recovery Technologies (“CMRT”) for remediation and
rehabilitation of the mercury contaminated Naboc River on Mt.
Diwata, in Davao D’Oro, Philippines. CMRT will work in direct
collaboration with the Philippine Department of Environment and
Natural Resources (DENR) and the provincial government of Davao
D’Oro for the intensified rehabilitation of this mine-waste
contaminated river.Non-mining Assets
Our non-mining assets are now valued at over $25 million, net of
debt. We have agreements to sell the Industrial and Commercial
lands plus the senior water rights in Silver Springs, for over $10
million, and now expect those sales to close in Q3. These proceeds
will extinguish approximately $5.2 million in debt obligations
(including our $4.1 million Debenture). Our $6.1 investment in
Tonogold Convertible Preferred Stock (CPS) is now valued at $10.4
million based on shares that we have already converted and
Tonogold’s current share price. We are also owed
approximately $4.9 million from Tonogold through a 12%, cash
interest paying debt instrument, with principal payments of $0.4
million still due this October 2020, and $4.475 million due
September 2021.
Mr. DeGasperis concluded, “We expect that our efforts to
monetize the non-strategic assets and eliminate the remaining debt
to be completed in the third quarter. We are accelerating the
commercialization of the mercury remediation system, with our
outstanding industry partners, and moving faster toward the
intermediate $125 million valuation throughout the remainder of
this year and position us to grow those businesses and valuations
toward our $500+ million target over the next 2-3 years and
beyond. We look forward to an active and productive third
quarter and for the remainder of this year as we re-establish
mineral revenues later this year.”
Conference Call The Company will host a
conference call Tuesday July 28, 2020, at 8:00 a.m. Pacific
Time/11:00 a.m. Eastern Time. The live call will include a
moderated Q&A, after the prepared comments by the
Company. Please join the event 5-10 minutes prior to
scheduled start time. When prompted, provide the confirmation code.
The dial-in telephone numbers for the live audio are as
follows:
Toll Free: 800-367-2403Direct:
1-334-777-6978Confirmation Code: 6733226 The audio will be
available, usually within 24 hours of the call, on the Company’s
new
website:http://www.comstockmining.com/investors/investor-library
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 DeGasperis Executive Chairman & CEO Tel (775) 847-4755
degasperis@comstockmining.com |
Zach Spencer Director of External Relations Tel (775) 847-5272
Ext.151questions@comstockmining.com |
Comstock (AMEX:LODE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Comstock (AMEX:LODE)
Historical Stock Chart
From Apr 2023 to Apr 2024