Comstock Mining Inc (NYSE:LODE), a gold and silver mining company based in Nevada, revealed this week that its partner Tonogold Resources Inc. has successfully completed the first phase of an option agreement to channel money into its Lucerne Mine project.
Following through on an agreement signed last October, which promises Tonogold a share of the profits from the Lucerne Mine project, Tonogold invested roughly US$1mln toward the due-diligence assessment of Lucerne’s econonomic feasibility and paid an additional US$2mln for the right to extend its option agreement.
Tonogold, a mining company which focuses on advanced exploration properties in Nevada and Mexico, has pledged to invest as much as US$7mln in Lucerne by October 2019 and a total of US$20mln by April 2021. Once the full amount of investment is channeled into the mine, Tonogold and Comstock plan to enter into a joint venture agreement and share profits from Lucerne.
“This venture has diligently focused on developing a sustainably profitable mine. We feel the full potential of Lucerne depends on this type of technical collaboration, with the right partner and capital to enable it,” Corrado De Gasperis, chief executive of Comstock, said in a statement.
Comstock Mining shares rose 20.2% to US$0.31 in Tuesday’s mid-morning trading session.