DivestmentJun 24, 2026, 06:07 AM
Comstock Sells Legacy Mining Assets for Over $45M
AI Summary
Comstock Inc. announced the sale of 100% of its mineral, mining, processing, and related mining district real estate entities to Mackay Precious Metals Inc. for an aggregate transaction value exceeding $45 million. The deal includes over $30 million in cash and stock payments, a retained 1.5% net smelter returns royalty, the assumption of all reclamation obligations, and a potential $10 million contingent payment. This divestiture is a strategic move to transform Comstock from a hard rock mining company to a renewable metals and materials company, aiming to unlock shareholder value, reallocate capital for growth, and reduce costs.
Key Highlights
- Comstock Inc. sold its legacy mining assets to Mackay Precious Metals Inc. for an aggregate value over $45 million.
- The transaction includes an initial cash payment of $20 million.
- Comstock will receive 2 million shares of Mackay Gold & Silver Corp. common stock, valued over $3.5 million.
- A secured second-tranche cash payment of $7 million is due within 18 months.
- A contingent payment of $10 million is possible if Mackay makes a construction decision or undergoes a change of control within seven years.
- Comstock retains a 1.5% net smelter returns (NSR) royalty on minerals produced from the properties.
- Mackay assumes all reclamation obligations and liabilities, and Comstock expects over $1.5 million in annualized savings.
- Mackay has an option to repurchase the NSR royalty for $3.5 million, or $7 million if the contingent payment is not triggered.
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