Strategic Mining Asset Sale
Comstock Inc. Completes $45 Million Sale of Legacy Mining Assets to Mackay
Key Points
Comstock sold four subsidiaries: Comstock Mining LLC, Comstock Processing LLC, Comstock Exploration and Development LLC, and Comstock Real Estate Inc., transferring all mining claims (patented and unpatented), town lots, processing facilities, permits, and water rights.
Mackay Precious Metals Inc. will assume all reclamation obligations and related liabilities, including reclamation deposits and collateral for the sold entities.
The deal is expected to reduce Comstock's operating costs by about $1.5 million annually.
Mackay Precious Metals is a subsidiary of Mackay Gold & Silver Corp., which trades on TSXV as MACK and OTCQB as MKGSF.
Corrado De Gasperis described the transaction as a milestone in transforming Comstock into a global renewable metals and materials company, highlighting improved liquidity and reduced costs while pursuing growth in solar recycling.
Comstock Inc. completed a $45 million sale of its Nevada mining assets to Mackay Precious Metals, a unit of Mackay Gold & Silver Corp., marking a major shift toward renewable metals and recycling Market Screener. The deal closes a chapter on Comstock's legacy mining operations and positions the company to focus on solar panel recycling and sustainable materials instead Market Screener.
Comstock received $20 million in cash, 2 million shares valued at $4.5 million, and stands to gain $10 million to $12 million after taxes Market Screener. The company also retained a 1.5% royalty on future production and could receive up to $17 million more in future payments Market Screener.
Four Mining Subsidiaries Transfer Hands
Mackay Precious Metals acquired all four of Comstock's mining subsidiaries, including Comstock Mining LLC and Comstock Processing LLC Market Screener. The deal transferred 100% of mining claims in Storey County and Lyon County, Nevada, plus all town lots, processing facilities, permits, and water rights Globe and Mail.
Mackay also assumed every reclamation obligation and environmental liability tied to the old mining operations Market Screener. This removes a major cost burden from Comstock's balance sheet and frees up capital for new projects.
Annual Cost Savings of $1.5 Million Ahead
The sale is expected to cut Comstock's annual operating costs by roughly $1.5 million Market Screener. These savings come from closing out mining operations, avoiding ongoing reclamation expenses, and shedding employee and facility costs tied to the Nevada properties.
Lower costs plus the $20 million cash infusion improve Comstock's financial flexibility without diluting shareholder stakes Market Screener. The company can now pursue growth in solar recycling without burning through shareholder equity on legacy mining losses.
Comstock Keeps Upside via Royalties and Future Payments
Comstock retained a 1.5% net smelter return royalty on all precious metals mined from the sold properties Market Screener. If Mackay strikes it rich, Comstock still captures a small percentage of future production revenues, tying the company's fate to mining success without operational risk.
The deal also includes a $7 million second payment due within 18 months and a $10 million contingent payout if Mackay or a buyer develops the mine or sells for $500 million or more Market Screener. This structure lets Comstock participate in upside scenarios while immediately boosting cash and cutting costs.
Strategic Pivot Toward Renewable Metals and Recycling
Corrado De Gasperis, a Comstock leader, called the deal "a milestone" in transforming the company into a global renewable metals and materials business Market Screener. The shift reflects growing demand for recycled metals, especially from solar panels and batteries, rather than traditional mining extraction.
By exiting legacy mining, Comstock dodges years of environmental cleanup costs and regulatory headaches tied to Nevada operations Market Screener. The company can now chase higher-margin solar recycling opportunities without the capital intensity and environmental risk of running an active mine.
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