Comstock sells Northern Mining Targets to Mackay Precious Metals

Comstock has executed a Membership Interest Purchase Agreement to sell 100% of the northernmost patented and unpatented mining claims, mineral exploration rights and town lots currently 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 aggregate purchase price of $2.75M and a 1.5% NSR production royalty from the sales of silver, gold, and all other valuable minerals and products extracted from these properties, in perpetuity.The Company was paid $1.3M in cash with another $0.45M due before February 15, 2025, plus an additional $1M that will be paid within 45 days of the completion of Mackay’s public listing, at the election of Mackay, in either cash or their publicly registered common shares. The monetized value of $1M from the public listed shares is guaranteed by the value date of October 31, 2025. On June 30, 2023, Comstock executed a Mineral Exploration and Mining Lease Agreement with Mackay. Since June 30, 2023, Comstock has received cash of $3.2M in initial and ongoing lease payments and will also receive an additional, final pro-rata lease payment associated with these properties of $0.5M before February 15, 2025. The $3.7M in total lease payments are in addition to the $2.75M sale price. The parties terminated the Mackay Lease on December 18, 2024. 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.