Comstock Mining Monetizes Preferred Share Holdings; Reduces Debt by $2 million

VIRGINIA CITY, N.V., Oct. 06, 2020 (GLOBE NEWSWIRE) — Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today, the receipt of over $4 million in cash proceeds from the monetization of preferred stock. Under the terms of the Lucerne mine sale with Tonogold, Comstock Mining received $6.1 million in Convertible Preferred Stock (“CPS”) issued by Tonogold. Through 9/30/2020, the Company had converted $3.920 million CPS in exchange for 21,777,778 common shares of Tonogold. On October 2, 2020, Tonogold redeemed the remaining $2.18 million CPS for cash proceeds of $2.616 million, representing 120% of the CPS face value. This transaction allowed the Company to reduce its promissory notes, from $4.475 million to $2.5 million, reducing interest expense.
The Company has also realized approximately $1.386 million in cash proceeds from the sale of 3,587,833 common shares at an average price of approximately $0.40 per share and continues to hold 18,189,945 common shares with a current estimated value of $7.1 million and holds a $4.475 million 12% Convertible Secured Note Receivable, due September 20, 2021. The Company retains 1.5% NSR royalties on all of Tonogold’s exploration and development properties and a 25% portion of a 4% NSR of certain Comstock Lode mineral claims.Mr. De Gasperis, Executive Chairman and CEO stated, “Our liquidity has been strengthened and our debt obligations are within striking distance of being fully paid off as we work directly and collaboratively with Tonogold and focus on our own precious-metal developments in the both the Dayton resource and the Spring Valley exploration target areas as well as the commercialization of MCU’s mercury remediation technology and systems.”                                      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.

Bay Street News

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt

Start typing and press Enter to search