Comstock Gains After Agreeing to Sell Lucerne Assets to Tonogold
(Bloomberg) -- Comstock Mining Inc. surges 43 percent in pre-market trading after announcing a definitive agreement to sell its Lucerne properties to Tonogold Resources for $15 million cash, and $8 million in relief of future lease and reclamation obligations.
- Deal includes $10 million in cash payments to Comstock in early 2019, helping the company eliminate debt; Comstock to receive another $5 million from Tonogold in early 2020
- Tonogold also gets option to lease American Flat property and equipment; Comstock will retain 1.5 percent royalty in Lucerne net smelter
- Sees deal closing between March and May
- Companies will hold a call to discuss the deal at 11 a.m. New York time 888-297-8935 pw 1295670
©2019 Bloomberg L.P.