LODE - Comstock Receives Early Payments on Mineral Exploration Lease | Benzinga
VIRGINIA CITY, Nev., Dec. 06, 2023 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE:LODE) ("Comstock" and the "Company,") an innovator of decarbonizing technologies that is leveraging physics-based artificial intelligence (AI) and sensing technologies to transform mineral exploration, announced today that its wholly-owned subsidiary, Comstock Northern Exploration, LLC, has received early all payments totaling over $2 million this year from Mackay Precious Metals Inc. ("Mackay").
Earlier this year, Comstock announced a Mineral Exploration and Mining Lease Agreement (the "Mineral Lease") with Mackay, to lease the northernmost patented mining claims, mineral exploration rights, and town lots (the "Northern Targets") owned and controlled by Comstock. The Northern Targets encompass both the Gold Hill and northern Occidental Lode claim groups in the historic, world-class Comstock Mining District located in Storey County, Nevada.
"Mackay made its fourth quarter payment early, as it prepares its exploration and development plan of our northern targets," stated Mr. Corrado De Gasperis, Comstock's Executive Chairman and Chief Executive Officer. "These timely cash receipts cover all of our annual mining segment operating expenses and positions us for real resource growth with a technically astute, capable, and aligned mineral discovery partner, at a coincidently ideal time with rising gold and silver economics."
The Mineral Lease has a term of 20 years and would automatically continue once mine feasibility is established and for so long as Mackay is engaged in mining operations and in full compliance with the Mineral Lease. The Mineral Lease requires Mackay to spend at least $1 million per year for exploration and development activities on the Northern Targets. The fees associated with the Mineral Lease included a $1.25 million initiation fee that was fully paid at signing plus $1.5 million per annum for the first four years, and $1 million per annum thereafter, in all cases plus expense reimbursements of approximately $200,000 per year. Comstock also retains a 1.5% net smelter return royalty from all future precious metal production. Total receipts for 2023, including the initiation fee paid in June 2023, were $2.125 million.
The Mineral Lease contains non-compete restrictions prohibiting Mackay from acquiring or staking property outside a limited area of influence in Storey County and within two miles of any of the property owned or leased by Comstock in the District (including both Lyon County and Storey County properties) and mutual rights of first refusal with respect to the sale of certain mining assets for both parties.
Comstock's Q4 2023 Perception Analysis Report
Comstock's investor relations firm, RB Milestone Group LLC ("RBMG"), is compiling results from an investor survey that stakeholders have begun to participate in following the Company's Q3 earnings call on October 26th. Comstock and the RBMG team would appreciate your contribution as it will help further define the trends across the Company's strengths, weaknesses and milestones. Surveying will conclude at the end of the quarter and the Q4 report will be published shortly thereafter. ...