Comstock Inc. announced on December 20, 2024, the execution of a Membership Interest Purchase Agreement to sell its northernmost patented and unpatented mining claims and mineral exploration rights, known as the Northern Targets, to Mackay Precious Metals Inc. The sale also included Comstock’s 25% membership interest in Pelen LLC. The aggregate purchase price for these assets is $2.75 million, in addition to a 1.5% Net Smelter Return (NSR) production royalty on future sales of silver, gold, and other valuable minerals from these properties, in perpetuity.
Comstock received an initial cash payment of $1.3 million, with an additional $0.45 million due before February 15, 2025. A further $1.0 million will be paid within 45 days of Mackay’s public listing, payable in cash or publicly registered common shares, with the value guaranteed by October 31, 2025. This transaction follows the termination of a prior lease agreement with Mackay on December 18, 2024.
The company had previously received $3.2 million in initial and ongoing lease payments from the Mackay Lease since June 30, 2023, and expects an additional $0.5 million pro-rata payment before February 15, 2025. The total consideration from the lease and subsequent sale amounts to nearly $6.5 million, plus the retained royalties. This divestiture allows Comstock to focus on advancing its Dayton Consolidated and permitted Lucerne resources and expanding gold and silver potential in the southern part of the district.
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