Comstock Inc. (“Comstock” and the “Company”), an innovator of technologies that enable systemic decarbonization, today announced that its wholly-owned subsidiary Comstock Northern Exploration, LLC has entered into a Mineral Exploration and Mining Lease Agreement (the “Mineral Lease”) with Mackay Precious Metals Inc. (“Mackay”), to lease the northernmost patented mining claims, mineral exploration rights and town lots (the “Northern Targets”) controlled by Comstock.
The Northern Targets encompass both the Gold Hill and northern Occidental Lode claim groups in the historic, world-class, Comstock Mining District located in Storey County, Nevada.
“Mackay has shown a keen understanding and interest in the geologic exploration associated with some of the most prospective and historically rich precious metal claims on the Comstock,” said Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “The ongoing revenue resulting from this agreement enhances our strategy to leverage physics based artificial intelligence to enable more efficient and effective mineral and materials discovery.”
The Mineral Lease has a term of 20 years and would automatically continue once mine feasibility is established and for so long as Mackay is engaged in mining operations and in full compliance with the Mineral Lease. The fees associated with the Mineral Lease included a $1.25 million initiation fee that was fully paid at signing plus $1.5 million per annum for the first four years, and $1 million per annum thereafter, in all cases plus expense reimbursements of approximately $200,000 per year. Comstock also retains a 1.5% net smelter return royalty from all future precious metal production.
Martyn Buttenshaw, Mackay’s chief executive officer said, “Our geologic team is excited and ready to commence mineral exploration and partnering with Comstock, both in terms of their existing knowledge and beyond. We have already accumulated a remarkable amount of data and insights into the northern targets and are keen to get started.”
The Mineral Lease contains non-competition restrictions prohibiting Mackay from staking property within two miles of any of the property owned or leased by Comstock in the District (including both Lyon County and Storey County properties) and mutual rights of first refusal with respect to the sale of certain mining assets for both parties.
Source: https://comstock.inc/