Comstock Mining Inc. entered into a definitive agreement to sell its Lucerne properties to Tonogold Resources Inc. for $15 million cash, and $8 million in future lease and reclamation obligation.
“These transactions position Lucerne and our partner, Tonogold, with a tremendous platform for developing and delivering mine production,” said Corrado De Gasperis, Comstock executive chairman and CEO, in a Jan. 28 statement.
The Lucerne gold-silver resource is part of the historic Comstock mining district between Reno and Carson City.
Through the deal expected to close this spring, ownership or control of the Lucerne properties and related permits will transfer to Tonogold, a junior mining company based in La Jolla, California.
Tonogold has the option to lease Comstock’s American Flat property and equipment for crushing, leaching and processing material from the Lucerne mine.
Comstock would retain a 1.5 percent loyalty in Lucerne’s net smelter.
The agreement includes $10 million cash payments to Comstock in 2019 and another $5 million in early 2020.
If it closes, the deal overrules an October 2017 option agreement that would have allowed Tonogold to earn a partial interest in the property via payments.