Comstock Closes $45M Sale of Legacy Mining Assets

Key Facts

1Comstock closed the sale of its mining assets to Mackay Precious Metals for an aggregate value exceeding $45 million.

2The company received $20 million in cash and 2 million common shares of Mackay Gold & Silver currently valued at $4.5 million.

3Comstock expects to record a gain between $10 million and $12 million on the sale with no expected cash taxes.

In a move reflecting the company's strategy to divest from legacy assets and refocus its portfolio, Comstock has closed the sale of its mining-related entities to Mackay Precious Metals for an aggregate value exceeding $45 million. The transaction involved the total sale of four subsidiaries: Comstock Mining LLC, Comstock Processing LLC, Comstock Exploration and Development LLC, and Comstock Real Estate Inc. This divestment is expected to provide immediate liquidity and streamline the company's corporate structure.

According to analyst reports, Comstock received $20 million in cash and 2 million common shares of Mackay Gold & Silver Corp, currently valued at approximately $4.5 million. The company expects to record a gain on the sale ranging between $10 million and $12 million, notably with no expected cash taxes on the transaction. Furthermore, the agreement secures a second-tranche payment of $7 million due within 18 months and retains a 1.5% NSR royalty on future mineral sales from the properties.

Regarding market performance, updated price levels for LODE were unavailable at the close of August 24, 2026, though the deal's closure strengthens the company's cash position. Investors are looking ahead to potential contingent payments of $10 million tied to future mine construction or change-of-control events at Mackay. In the broader context, recent economic data showed the US NY Empire State Manufacturing Index rising to 20.6, suggesting a stable environment for industrial and resource-linked corporate actions.

Sources:

globenewswire.com