Comstock Mining advances strategic mining joint venture
Comstock Mining announced that Tonogold Resources has successfully completed the first phase of the Option Agreement signed on October 3, 2017, having invested approximately $1M during the past six months toward the evaluation and assessment of the Lucerne Mine Project's resource and preliminary economic feasibility and also having paid the company an additional $2M for the right to extend the option. The Option Agreement established a series of requirements, including technical and financial analysis, along with additional funding milestones for Tonogold to earn a share of the company's Lucerne Mine Project. In order to maintain and progress the option to earn-in, Tonogold will now continue investing toward a cumulative $7M for Lucerne by October 3, 2019, and a cumulative $20M by April 3, 2021, and must produce a technical and economic feasibility assessment for mining the Lucerne resource. Under the agreement, when Tonogold completes the $20M investment, and other related prerequisites, Tonogold and Comstock would then affect a joint venture for the future mining of the Lucerne mineral resource. In addition to the $2.2M already received by the company from Tonogold, the investments also include at least $1.2M in annual subsidies for the company.