Comstock Mining Inc. (NYSE American: LODE) announced today that it received a second $1 million non-refundable payment toward the sale of its Lucerne properties (~1200 acres) to Tonogold Resources, Inc. (OTCMKTS: TNGL). On January 28, 2019, the Company announced it entered into a definitive agreement with Tonogold for $15 million in cash, $8 million in obligation relief, a permanent reduction of annual operating expenses by $1 million, and a retained 1.5% net smelter return royalty on Lucerne properties.

The Company will transfer the ownership or control of the Lucerne properties and related permits, including the recently extended Storey County Special Use Permit for mining and processing.  The Company retains ownership and/or control of the remaining land position in the Comstock district, including but not limited to the Dayton, Spring Valley and the American Flat properties. The Company expects the transaction to close over the next two months. 

Strategic Partnership and Sale Highlights 

• Provides a minimum of $10 million in cash to the Company, eliminating the Debenture debt;
• Provides $5 million in cash to the Company in 2020, accelerating Dayton developments;
• Relieves $8 million in obligations, primarily for the Northern Comstock (NCJV) obligations;
• Grants Tonogold an option to lease the American Flat property and equipment for:
  • $1 million per annum, plus $1 per ton for the first $15 million;
  • $1 million per annum, plus $0.50 per ton for the next $10 million ($25 million total); and
  • $0.25 per ton for all tons processed over $25 million in revenue.

• Subsidizes $1.1 million per annum in American Flat related expense;
• Retains a 1.5% Lucerne net smelter royalty; and
• Eliminates our Debenture obligation and over $1 million in related, annual interest costs.  

Mr. Corrado De Gasperis, Executive Chairman and CEO, stated, “The additional $1 million in non-refundable deposit reaffirms Tonogold’s progress and commitment for advancing this transaction and advancing the Lucerne mine back into production.  We look forward to closing during the next quarter.”



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 that are economically feasible and socially responsible.