VIRGINIA CITY, Nev., Feb. 26, 2019 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced it has formally signed agreements to sell the Company’s non-mining assets in Silver Springs, Nevada. These non-mining assets include the Company’s 98-acre certified industrial site and related senior water rights and the purchase agreements and options on the 160 acres of land and water and sewer rights for a total of $9.75 million. As part of the agreements, the Company retains a 3% future profit sharing interest on the resale of these assets. The sales are expected to close between March and September 2019. The Company expects to record a gain of approximately $5 million.
Corrado De Gasperis, Executive Chairman and CEO said, “With the explosive growth in the nearby Tahoe Reno Industrial Center, our non-mining assets are in an ideal location for a developer to capitalize on and grow into this region.”
The Company’s Board has also determined, consistent with the sale of these non-mining assets, it is in the best interests of the Company and its shareholders to implement a strategy that is solely focused on high-value, high cash-generating, precious metal-based activities, including, but not limited to, metals and mining and related supply chain ventures and acquisitions, mineral exploration, engineering, resource development, economic mineral production, metal refining and environmentally-friendly, conservation-based, economically enhancing mining technologies and related processes.
Mr. De Gasperis, continued, “We are leveraging our mining platform and multiple-tax efficient positions to deliver superior returns. Consistent with our strategic focus, the Board has approved the formation of a precious metal and mining focused, Comstock-based opportunity zone fund, creating an investment vehicle to tax-efficiently partner with the Company for the exploitation of precious-metal based opportunities in Nevada-based or other qualified opportunity zones.”
On August 27, 2018, the Company received notification from the NYSE American LLC that the Company’s securities had been selling at or below $0.20 per share and the Company would have six months to cure the minimum price compliance requirement. The Company recently received notification from the NYSE American LLC (“NYSE”) that the Company has been granted an extension to May 31, 2019, to regain compliance with the NYSE continued listing standards. The Company believes its business strategy and plans for 2019, including closing on the previously announced transactions, will be sufficient for regaining compliant share price levels. Otherwise, the Company would effect a reverse stock split to regain minimum price levels. With the recent extension, the Company’s continued listing is predicated on demonstrating sustained price improvement no later than May 31, 2019.
Mr. De Gasperis concluded, “We are delighted by the support and extension from the NYSE. With our recently announced strategic partnerships and agreements to monetize our non-mining assets, we believe we will regain price compliance as a matter of due course. The NYSE represents the highest standard in quality, compliance and reputation, and we highly value the liquidity and protections it provides our shareholders and we do not see that relationship changing, now or in the future.”
The NYSE American notification does not affect the Company’s business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company’s material agreements. The Company’s common stock continues to trade under the symbol “LODE” with an added designation of “.BC” to indicate that the Company is below compliance with the NYSE American LLC’s listing standard.
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. 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 near-term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans and developments that are economically feasible and socially responsible.
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: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the board of directors); changes in business strategies, planning and tactics; 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; including the nature and timing and accounting for restructuring charges, derivative liabilities and the impact thereof; contingencies; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities; including asset sales and the redemption of the debenture 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 this report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and the following: 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 our title to properties; potential dilution to our stockholders from our stock issuances, 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 our businesses; permitting constraints or delays; business opportunities that may be presented to, or pursued by, us; acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our 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 our 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; assertion of claims, lawsuits and proceedings against us; 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 or the solicitation of an offer to buy the Debenture or any other securities of the Company.
|Contact information for Comstock Mining Inc.: |
PO Box 1118
Virginia City, NV 89440
|Corrado De Gasperis||Zach Spencer|
|Executive Chairman & CEO||Director of External Relations|
|Tel (775) 847-4755||Tel (775) 847-5272 ext. 151|