Comstock closes sale of legacy mining assets to Mackay Precious Metals, receives $20 million cash

Comstock Mining closed the sale of its legacy mining assets to Mackay Precious Metals in a deal valued above $45 million.

The company received $20 million cash and 2,000,000 Mackay Gold & Silver common shares valued at about $4.5 million. Comstock expects a $10 million–$12 million gain.

It also secured a second-tranche payment of $7 million due within 18 months.

Comstock retained a 1.5% net smelter return (NSR) royalty, which Mackay can buy out for $3.5 million, rising to $7 million after seven years.

The deal is expected to cut ongoing costs, with about $1.5 million in estimated annual operating savings. It also includes up to $10 million in contingent payments tied to mine build or a change of control.