Comstock Mining has formally signed agreements to sell the company’s non-mining assets in Silver Springs, Nev.
Corrado De Gasperis, executive chairman and CEO said, “With the explosive growth in the nearby Tahoe Reno Industrial Center, our non-mining assets are in an ideal location for a developer to capitalize on and grow into this region.”
These non-mining assets include the company’s 98-acre certified industrial site and related senior water rights and the purchase agreements and options on the 160 acres of land and water and sewer rights for a total of $9.75 million. As part of the agreements, the company retains a 3 percent future profit sharing interest on the resale of these assets. The sales are expected to close between March and September 2019. The company expects to record a gain of approximately $5 million.
Comstock Mining’s board has also determined, consistent with the sale of these non-mining assets, it is in the best interests of the company and its shareholders to implement a strategy that is solely focused on high-value, high cash-generating, precious metal-based activities, including, but not limited to, metals and mining and related supply chain ventures and acquisitions, mineral exploration, engineering, resource development, economic mineral production, metal refining and environmentally-friendly, conservation-based, economically enhancing mining technologies and related processes.
De Gasperis, continued, “We are leveraging our mining platform and multiple-tax efficient positions to deliver superior returns. Consistent with our strategic focus, the board has approved the formation of a precious metal and mining focused, Comstock-based opportunity zone fund, creating an investment vehicle to tax-efficiently partner with the company for the exploitation of precious-metal based opportunities in Nevada-based or other qualified opportunity zones.”
