Comstock Mining Announces 2019 Year End Results; Strategic Transactions Advance Value Targets, Significantly Improved Financial Position, Substantially Reduced Debt
Silver Investing

Comstock Mining Publicizes 2019 12 months Finish Outcomes; Strategic Transactions Advance Worth Targets, Considerably Improved Monetary Place, Considerably Lowered Debt

VIRGINIA CITY, Nev., March 19, 2020 (GLOBE NEWSWIRE) — Comstock Mining Inc. (the “Firm”) (NYSE American: LODE) in the present day introduced chosen unaudited monetary outcomes for the fiscal yr ended December 31, 2019.

2019 Chosen Strategic and Operational Highlights

  • Authorized a transformational technique centered on valuable metal-based development (the “Strategic Focus”);
  • Accomplished company and authorized entity realignment;
  • Closed on the 50% sale of the membership curiosity within the entity that owns Lucerne:
    — Obtained $5.9 million in non-refundable money towards the Lucerne sale;
    — Obtained $6.1 million in non-refundable inventory towards the Lucerne sale, valued at $9.1 million; and
    — Obtained $2.2 million in expense reimbursements related to the Tonogold agreements.
  • Partnered and launched Mercury Clear Up LLC, a mercury remediation, clear know-how development enterprise;
  • Accomplished concurrent reclamations and lowered reclamation bond liabilities by $zero.four million;
  • Obtained favorable Courtroom ruling on the Dayton Useful resource zoning, enabling accelerated development;
  • Elevated complete property by 38.three%, to $39.6 million, and lowered complete debt by 41%, to $5.four million; and
  • Escrowed non-mining property on the market, with the purpose of extinguishing all debt.

Corrado De Gasperis, Government Chairman and CEO of the Firm, stated, “Final yr was devoted to repositioning the Firm for valuable metal-based development, together with realigning the prevailing gold and silver property to facilitate each transactional and development-based development, partnering twice with Tonogold for advancing our northern mining and exploration properties, partnering with MCU to advance our working platform for world mercury remediation, partnering with Sierra Springs to promote our Silver Springs non-mining property and, in every case retaining fairness possession in all companions. We additionally cleared the zoning on our 100%-owned Dayton useful resource space, whereas considerably rising our property, reducing our liabilities and decreasing our debt towards extinguishment.”

Unaudited Full 12 months 2019 Chosen Monetary Highlights

The Firm skilled report low working prices and bills throughout 2019, of $5.5 million, together with $1.eight million for depreciation and amortization, or a 26.eight% discount from 2018, and a 38.5% discount when in comparison with 2017. These 2019 reductions embody roughly $2.2 million in money reimbursements from Tonogold Assets Inc. (“Tonogold”). The Firm anticipates a 10% discount in 2020, from decrease administrative prices.

  • Prices relevant to mining had been $1.5 million in 2019, a 45.eight% enchancment in comparison with 2018;
  • Exploration and growth prices had been $zero.75 million in 2019, a 21.7% enchancment in comparison with 2018;
  • Environmental bills decreased by $zero.5 million in 2019, a 194.5% enchancment in comparison with 2018, pushed by a major discount in reclamation liabilities ensuing from concurrent reclamation successes;
  • Basic and administrative bills had been $three.three million in 2019, a 2.eight% enchancment in comparison with 2018;
  • Internet loss was $three.eight million, or ($zero.20) loss per share for 2019, as in comparison with internet lack of $9.5 million, or ($zero.79) loss per share for 2018, with enchancment from the price discount efforts and Tonogold subsidies;
  • Internet money utilized in operations was $2.three million in 2019, as in comparison with $four.zero million in 2018, a 42.7% enchancment in comparison with 2018, primarily ensuing from value reductions;
  • Internet money supplied by investing actions was $2.6 million in 2019, as in comparison with a use of $1.6 million in 2018, a 262.four% enchancment in comparison with 2018, primarily from Tonogold proceeds for Lucerne;
  • Elevated complete property by 38.three%, to $39.6 million, and lowered complete debt by over 41%, to $5.four million; and
  • Money and money equivalents at December 31, 2019, had been $1.zero million.

Mr. De Gasperis added, “Our continued value discount efforts, coupled with expanded strategic partnerships, now positions us to advance a number of mining, remediation and exploration initiatives, on the Comstock and globally, at a low internet value and a particularly capital environment friendly method, as we start commercializing our mercury efforts globally.”

Comstock Mining’s Company Realignment & Strategic Transactions Advancing Worth

Throughout 2019, the Firm’s Board of Administrators permitted a transformational technique centered on high-value, cash-generating, valuable metal-based actions, (the “Strategic Focus”) together with, however not restricted to, metals exploration, engineering, useful resource growth, financial feasibility assessments, mineral manufacturing, metallic processing and associated ventures of environmentally pleasant, and economically enhancing mining applied sciences.

Throughout 2019, the Firm entered into agreements, as amended, to promote its curiosity within the Lucerne mine, by way of its wholly-owned subsidiary, Comstock Mining LLC, to Tonogold for complete consideration of over $24 million ($11.2 million in money, $6.1 million in inventory and roughly $7.zero million in assumed liabilities). The Firm additionally retains a 1.5% NSR royalty on Lucerne and leased different mineral claims by way of Comstock Northern Exploration.

Determine 1 – Comstock Company Realignment is out there at: https://www.globenewswire.com/NewsRoom/AttachmentNg/89902fa1-46f1-4073-a3e0-890aa6c9ee3a
Comstock Mining Inc. stays because the mum or dad firm that wholly owns the realigned subsidiaries apart from Comstock Mining LLC which is 50% owned. Comstock Mining LLC, the topic of a Membership Curiosity Buy Settlement with Tonogold, owns or controls the Lucerne properties, together with these contained within the Northern Comstock Joint Enterprise. Comstock Processing LLC owns the American Flat processing facility and extra land for potential enlargement. Comstock Northern Exploration LLC owns or controls the remaining Storey County mining claims and exploration targets, primarily positioned north of the Lucerne properties, together with the Gold Hill targets and the Occidental Lode. Comstock Exploration & Improvement LLC owns or controls the Lyon County mining claims and exploration targets, together with the Dayton Useful resource Space and the Spring Valley goal. Comstock Industrial LLC owns 98 acres in Silver Springs and water rights. Downtown Silver Springs LLC (DTSS) owns 160 acres in Silver Springs and water rights. Comstock Actual Property Inc. owns the Daney Ranch and Gold Hill Lodge property. The Firm has the choice to, however has not but, purchase as much as 25% of Mercury Clear Up LLC.

Tonogold Membership Curiosity Buy Settlement

On November 18, 2019, Tonogold obtained 50% of the membership pursuits of CML. Tonogold will obtain the remaining 50% after it has paid the remaining consideration. The Firm retains all administration management and authority over CML till Tonogold has made the remaining $5.2 million in funds. Accordingly, Tonogold’s membership curiosity in CML might be accounted for as a noncontrolling curiosity within the consolidated steadiness sheets.

Mineral Exploration and Mining Lease

Throughout 2019, the Firm entered right into a renewable mineral lease with Tonogold for sure mineral properties managed by the Firm in Storey County, Nevada (the “Exploration Lease”). The Exploration Lease grants Tonogold the proper to make use of these properties for mineral exploration and growth, and finally the manufacturing, elimination and sale of minerals. The Exploration Lease requires exploration spending, allowing, and engineering commitments of a minimal of $1 million per yr, for a cumulative complete of $20 million over 20 years. Tonogold additionally dedicated to particular milestones for issuing three technical reviews over the lifetime of the Exploration Lease.

Tonogold can pay a quarterly lease price of $10 thousand, upfront. The lease price will escalate 10% every year on the anniversary date of the Exploration Lease. The Exploration Lease additionally gives for royalty funds after mining operations begin. For the primary yr following the graduation of mining, royalties might be paid on the charge of three% of NSR for the properties. The speed might be lowered to 1.5% of NSR thereafter.

MCU, The Comstock and The Carson River Mercury Superfund Website

Comstock has additionally secured the mandatory Nevada permits and approvals for localized mercury remediation efforts. MCU has continued sampling many elderly Comstock waste dumps and different Comstock websites over the previous two weeks. The state-of the-art mercury remediation gear, particularly, the spiral concentrators, started arriving on website in March, with the remaining system, together with the Low-G mercury centrifuges and concentrators, proprietary mechanical, hydro, electro-chemical and oxidation processes, the moveable mercury-gold laboratory with assaying gear and the Dissolved Air Flotation (DAF) wastewater remedy processor now scheduled for April 2020.

MCU is targeted on its first home (Carson River Mercury Superfund Website) and its first worldwide (Philippines Mission) alternatives, because it establishes itself as the worldwide chief in mercury remediation and associated providers. Comstock has possession choices to amass 25% of the fairness of MCU and different rights that may end up in Comstock receiving as much as 62.5% participation in every mercury remediation alternative.

Individually, the Nevada Division of Environmental Safety—Bureau of Air Air pollution Management (NDEP) accomplished its technical evaluate of the purposes submitted by Comstock Processing LLC and issued the entity a brand new Class II Air High quality Working Allow. Comstock Processing LLC is the 100% owned, permitted platform, with processing gear and metallurgical labs, that allow the clean-technology platform, joint ventures and partnerships particularly within the space of mercury remediation and reprocessing of residual-leached mineralized supplies.

Company Replace, Liquidity & Capital Assets

The Firm has not bought any fairness throughout 2020, considerably bettering its monetary place all through 2019.

As of December 31, 2019, the Firm had money and money equivalents of $1.zero million, present property of $13.three million and present liabilities of $four.four million. The Firm had complete property of $39.6 million and complete liabilities of $16.1 million at December 31, 2019. Whole property elevated 38.three% over 2018, and complete liabilities decreased 16.four% and the Firm lowered its Senior Secured Debenture debt by 44.four% to $four.9 million. The Firm expects to extinguish its debt when the $10.1 million sale of its Silver Springs properties closes throughout the second quarter.

Mr. De Gasperis commented, “We’ve got considerably elevated our complete property to nearly $40 million, lowered our debt by nearly half, and sit up for monetizing our non-mining property and eliminating our debt. That is the strongest our steadiness sheet has been since 2011, with the very best development alternatives for gold proper in entrance of us.”

Outlook

Through the first half of 2020, the Firm expects to shut on the agreed upon sale of sure non-mining property positioned in Silver Springs, NV, to Sierra Springs Enterprises Inc., for complete internet proceeds of $10.1 million. The agreements had been signed throughout 2019, with $zero.three million of non-refundable deposits made and launched to the Firm from escrow. The Firm will use the remaining $9.eight million of proceeds to extinguish everything of its excellent Senior Secured Debenture obligation, principal and make-whole of roughly $four.9 million, plus accrued curiosity of roughly $zero.three million. Throughout 2020, the Firm expects to obtain a complete of roughly $2.three million in money for expense reimbursements required beneath the assorted Tonogold agreements.

The Firm’s annual working bills, together with different earnings and bills and excluding depreciation, are deliberate to be $four.9 million for fiscal yr 2020, with roughly $2.three million of that quantity at present being reimbursed beneath the assorted Tonogold agreements, leading to 2020 internet working bills of $2.6 million.

Tonogold is at present planning and allowing a drilling program for the Storey County exploration targets, together with the leased mineral claims, simply north of the Lucerne space, and expects to start drilling within the second quarter of 2020. Below the Exploration Lease, Tonogold should spend no less than $1.zero million per yr on exploration.

The Firm’s 2020 plans additionally embody acquiring the native permits for Dayton, increasing Dayton’s present useful resource and persevering with southerly into Spring Valley with incremental exploration packages that embody exploration and definition drilling of targets recognized by geophysical surveys, floor mapping, prior drilling and deeper geological interpretations that result in publishing an up to date, Dayton NI 43-101 mineral useful resource estimate.

The Firm’s 2020 plans additionally embody advancing the funding in and the commercialization of MCU’s mercury remediation processing applied sciences. The Firm expects to shut on the MCU transactions throughout the second and third quarters of 2020. MCU plans to begin trial operations within the second quarter of 2020, on the Firm’s processing facility, to validate the mercury extraction and remediation course of, with the target of remediating the Firm’s current properties inside the Carson River Mercury Superfund Website, enhancing the values of, and evaluating the potential financial feasibilities for these properties and creating new development alternatives in mercury remediation by demonstrating MCU’s technological and operational effectiveness.

MCU has agreed and plans to begin worldwide reclamation operations within the third quarter 2020. This represents the primary actual worldwide alternative for large-scale mercury remediation and environmental reclamations, utilizing MCU’s system, establishing MCU as a frontrunner in giant scale, mercury remediation initiatives.

Mr. De Gasperis concluded, “Whereas the markets stay in turmoil, we’re methodically strengthening our Firm, accelerating our development and maximizing the breadth of our publicity to gold, in probably the most revolutionary, environmentally accountable and capital delicate means doable. We’re wanting ahead to 2020 and past.”

Convention Name

The Firm will host a convention name in the present day, March 19, 2020, at eight:00 a.m. Pacific Time/11:00 a.m. Japanese Time. The dwell name will embody a moderated Q&A, after the ready feedback by the Firm. The dial-in phone numbers for the dwell audio are as follows:

Toll Free: 1-888-297-8935
Direct: 1-646-828-8143
Affirmation Code: 5910203
The audio might be accessible, often inside 24 hours of the decision, on the Firm web site:
http://www.comstockmining.com/buyers/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining firm with intensive, contiguous property within the Comstock District and is an rising chief in sustainable, accountable mining that’s at present commercializing environment-enhancing, precious-metal-based applied sciences, merchandise and processes for valuable metallic restoration. The Firm started buying properties within the Comstock District in 2003. Since then, the Firm has consolidated a good portion of the Comstock District, amassed the only largest identified repository of historic and present geological knowledge on the Comstock area, secured permits, constructed an infrastructure and accomplished its first section of manufacturing. The Firm continues evaluating and buying properties inside and outdoors the district increasing its footprint and exploring all of our current and potential alternatives for additional exploration, growth and mining. The Firm’s purpose is to develop per-share worth by commercializing environment-enhancing, precious-metal-based merchandise and processes that generate predictable money circulation (throughput) and enhance the long-term enterprise worth of our northern Nevada primarily based platform.

Ahead-Trying Statements
This press launch and any associated calls or discussions might embody forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. All statements, aside from statements of historic info, are forward-looking statements. The phrases “imagine,” “anticipate,” “anticipate,” “estimate,” “challenge,” “plan,” “ought to,” “intend,” “might,” “will,” “would,” “potential” and comparable expressions determine forward-looking statements, however should not the unique technique of doing so. Ahead-looking statements embody statements about issues comparable to: consummation of all pending transactions; challenge, asset or Firm valuations; future trade market circumstances; future explorations, acquisitions, investments and asset gross sales; future efficiency of and closings beneath numerous agreements; future adjustments in our exploration actions; future estimated mineral sources; future costs and gross sales of, and demand for, our merchandise; future impacts of land entitlements and makes use of; future allowing actions and desires therefor; future manufacturing capability and operations; future working and overhead prices; future capital expenditures and their influence on us; future impacts of operational and administration adjustments (together with adjustments within the board of administrators); future adjustments in enterprise methods, planning and ways and impacts of latest or future adjustments; future employment and contributions of personnel, together with consultants; future land gross sales, investments, acquisitions, joint ventures, strategic alliances, enterprise mixtures, operational, tax, monetary and restructuring initiatives; the character and timing of and accounting for restructuring expenses and spinoff liabilities and the influence thereof; contingencies; future environmental compliance and adjustments within the regulatory setting; future choices of fairness or debt securities; the doable redemption of debentures and related prices; future working capital, prices, revenues, enterprise alternatives, debt ranges, money flows, margins, earnings and development.

These statements are primarily based on assumptions and assessments made by our administration in mild of their expertise and their notion of historic and present traits, present circumstances, doable future developments and different components they imagine to be acceptable. Ahead-looking statements should not ensures, representations or warranties and are topic to dangers and uncertainties, lots of that are unforeseeable and past our management and will trigger precise outcomes, developments and enterprise choices to vary materially from these contemplated by such forward-looking statements. A few of these dangers and uncertainties embody the danger components set forth in our filings with the SEC and the next: counterparty dangers; capital markets’ valuation and pricing dangers; hostile results of local weather adjustments or pure disasters; world financial and capital market uncertainties; the speculative nature of gold or mineral exploration, together with dangers of diminishing portions or grades of certified sources; operational or technical difficulties in reference to exploration or mining actions; contests over title to properties; potential dilution to our stockholders from our inventory issuances and recapitalization and steadiness sheet restructuring actions; potential incapacity to adjust to relevant authorities rules or regulation; adoption of or adjustments in laws or rules adversely affecting companies; allowing constraints or delays; choices concerning enterprise alternatives that could be introduced to, or pursued by, us or others; the influence of, or the non-performance by events beneath agreements regarding, acquisitions, joint ventures, strategic alliances, enterprise mixtures, asset gross sales, leases, choices and investments to which we could also be celebration; adjustments in america or different financial or fiscal insurance policies or rules; interruptions in manufacturing capabilities on account of capital constraints; gear failures; fluctuation of costs for gold or sure different commodities (comparable to silver, zinc, cyanide, water, diesel gas and electrical energy); adjustments in usually accepted accounting rules; hostile results of terrorism and geopolitical occasions; potential incapacity to implement enterprise methods; potential incapacity to develop revenues; potential incapacity to draw and retain key personnel; interruptions in supply of crucial provides, gear and uncooked supplies on account of credit score or different limitations imposed by distributors or others; assertion of claims, lawsuits and proceedings; potential incapacity to fulfill debt and lease obligations; potential incapacity to take care of an efficient system of inner controls over monetary reporting; potential incapacity or failure to well timed file periodic reviews with the SEC; potential incapacity to record our securities on any securities alternate or market; incapacity to take care of the itemizing of our securities; and work stoppages or different labor difficulties. Incidence of such occasions or circumstances may have a cloth hostile impact on our enterprise, monetary situation, outcomes of operations or money flows or the market worth of our securities. All subsequent written and oral forward-looking statements by or attributable to us or individuals appearing on our behalf are expressly certified of their entirety by these components. Besides as could also be required by securities or different regulation, we undertake no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new data, future occasions, or in any other case.

Neither this press launch nor any associated calls or discussions constitutes a suggestion to promote, the solicitation of a suggestion to purchase or a suggestion with respect to any securities of the Firm, the fund or every other issuer.

 

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