Comstock Inc. amends agreement with Mackay Precious Metals

Comstock Inc. (LODE) announced it has amended the membership interest purchase agreement to sell 100% of the northernmost patented and unpatented mining claims, mineral exploration rights and town lots owned by Comstock’s wholly-owned subsidiary Comstock Northern Exploration, plus all of the 25% issued and outstanding membership interest that Comstock owns in Pelen to Mackay Precious Metals for an increased aggregate purchase price of $2.95M and a 1.5% NSR production royalty from the sales of all valuable minerals and products extracted from these properties. The amendment increases the purchase price to $2.95M in cash from the previous $2.75M in both cash and stock, effectively increasing the cash component of the transaction by $1.2M. The company has previously received $1M in cash for this transaction. The remaining $1.95M is due through a series of payments in June, July and ending on or before August 30. The amendment also includes a provision that Mackay will transfer approximately 300 acres of patented and unpatented mining properties in Lyon County, that are adjacent to and expand the footprint of Comstock’s Dayton Consolidated and Spring Valley mineral claims and lands, for no additional consideration. On June 30, 2023, Comstock executed a mineral exploration and mining lease agreement with Mackay. The Mackay Lease was terminated on December 18, 2024, in favor of the MIPA. Since June 30, 2023, Comstock has recognized revenue of $3.77M in initial and ongoing lease payments and reimbursed expenses and will receive the final $0.25M in cash from these revenues this week. The $3.77M in total lease revenue is in addition to the $2.95M sale price. The Northern Targets encompass both the Gold Hill and Occidental Lode claim groups in Storey County, Nevada. Pelen owns certain claims adjacent to and/or relevant to these northern claim groups.