Comstock sells mining assets to Mackay for $45 million in strategic pivot

Comstock Inc. sold its legacy mining and processing operations to Mackay Precious Metals Inc. for over $45 million, shedding its hard-rock mining roots to focus on solar-panel recycling and renewable metals.

"This transaction achieves a critical milestone in our transformation from a hard rock, junior mining company to our growing, global, renewable metals and materials company," said Corrado De Gasperis, chief executive officer at Comstock.

The deal includes $20 million in cash received at closing, 2 million shares of Mackay Gold & Silver Corp. valued at more than $3.5 million, and a secured $7 million second-tranche payment due within 18 months. Mackay also assumed all reclamation obligations and liabilities tied to the properties.

The divestiture is expected to cut annual operating costs by more than $1.5 million while preserving upside through a retained 1.5% net smelter return royalty and a potential $10 million contingent payment tied to future mine construction or a change-of-control transaction exceeding $500 million.

Mackay acquired four Comstock subsidiaries — Comstock Mining LLC, Comstock Processing LLC, Comstock Exploration and Development LLC, and Comstock Real Estate Inc. — including all patented and unpatented mining claims, town lots, processing facilities, operating permits and water rights in the historic Comstock district of Nevada. The transaction builds on a prior relationship between the two companies. Mackay leased Comstock's Northern Targets starting in June 2023 and purchased those properties in December 2024 for $3.85 million. Including lease payments and reimbursed expenses, Comstock received approximately $8 million from those earlier transactions.

Comstock shares rose 4.82 percent to $5.00 following the announcement, adding roughly $17 million to the company's market capitalization of $362 million. The move contrasted with declines of 4 percent to 10 percent among peers including Platinum Group Metals, Vox Royalty, Piedmont Lithium and Largo, suggesting a stock-specific reaction rather than sector-wide momentum. Short interest stands at 11.12 percent of float as of May 29, providing scope for further volatility but not an extreme squeeze setup.

The company now pivots fully to its renewable metals business, which extracts silver, aluminum, gold and other critical minerals from end-of-life photovoltaic panels. The S-3 shelf registration filed concurrently registers 4.1 million existing shares for resale, providing liquidity for holders but no direct proceeds to Comstock.

Mackay has the option to repurchase the NSR royalty for $3.5 million in cash at any time. If the $10 million contingent payment is not triggered within seven years, the royalty buyout price doubles to $7 million. Mackay may also elect to satisfy up to $2 million of the second-tranche payment through additional shares, subject to pricing thresholds in the securities purchase agreement.

The transaction positions Comstock as a pure-play renewable metals processor at a time when solar-panel recycling is gaining regulatory and commercial traction. The company's ability to execute on that strategy while managing the roughly 11 percent short interest will determine whether the stock can sustain its post-announcement gains.

This article is for informational purposes only and does not constitute investment advice.