Tuesday, September 15, 2020
Comstock Mining (LODE)
Completes Sale of Lucerne While Retaining Economic Exposure
Comstock Mining Inc is a mining company with a focus on gold and silver deposits in the Comstock and Silver City mining districts in Nevada. Its operations are divided into two segments, namely mining and real estate. Its mining projects include The Lucerne Resource area, the Dayton Resource area, the Spring Valley exploration target, the Northern Extension, Northern Targets and Occidental areas. The Real Estate segment involves land, real estate rental properties and a hotel, restaurant & bar provided by the Gold Hill Hotel located in Gold Hill, Nevada just south of Virginia City and the Daney Ranch, located just south of Silver City. The majority revenues are generated from the real estate segment.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
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Sale of Lucerne completed. Comstock Mining closed the sale of its Lucerne property to Tonogold Resources, Inc. (OTC: TNGL, Not Rated). Consideration, much of which has been realized, includes $7.1 million in cash, $6.1 million in convertible preferred stock, and a $4.475 million, 12% notes receivable that is due and payable on September 20, 2021. Tonogold assumed $6.7 million in future lease and reclamation obligations.
Sharing in Lucerne’s success. Comstock retained a 1.5% net smelter return (NSR) royalty on Lucerne and a lease option agreement for Tonogold to use Comstock’s American Flat processing facility to process material from the mine which could generate additional revenue assuming the mine goes into production. Therefore, Comstock is able to share in the success of a project that is being funded and …
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.