Comstock Mining Inc (NYSEAMERICAN: LODE) is having an overwhelmingly strong start to the trading session this morning after announcing the advancement of a joint venture and more. Of course, the positive news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The joint venture and other news;
- what we’re seeing from LODE as a result;
- and what we’ll be watching for ahead.
LODE Announces Key Updates
As mentioned above, Comstock Mining is having an incredibly strong start to the trading session this morning after announcing an update with regard to a joint venture. In a press release issued early this morning, the company announced that Tonogold Resources has successfully completed the first phase of the Option Agreement that was signed in early October of last year. This phase had to do with an investment of $1 million during six months.
This $1 million investment has been made to help cover the costs of the evaluation and assessment of the Lucerne Mine Project’s resource and preliminary economic feasibility. On top of that Tonogold has paid LODE an additional $2 million for the right to extend the option. The first milestone gave Tonogold 6 months to conduct an inital review of the project. In the release, the company said that approximately $1 million was invested by Tonogold in project costs.
Moving forward, Tonogold will continue to invest toward a cumulative total of $7 million. Under the terms of the agreement, Tonogold has until October 3, 2019 to complete this investment milestone. By 2021, the company will have invested a cumulative $20 million. In a statement, Mr. Corrado De Gasperis, Executive Chairman and CEO at LODE, had the following to offer:
We are pleased with the geological analysis and advancement, to date, on the Lucerne resource and the diligence of our mining partner and their advisors. The next phase should accelerate the evaluation, drilling and development activities, while continuing to lower our annual costs by approximately one-third.
What We’re Seeing From The Stock As A Result
With the news that the Lucerne Mine Project joint venture between Comstock Mining and Tonogold is moving progress, investors are clearly excited. That excitement can be seen when you take a look at the price action that we’re seeing on the stock this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (7:57), LODE is trading at $0.30 per share after a gain of $0.05 per share or 19.47% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LODE. In particular, we’re interested in following the story surrounding the joint venture with Tonogold and excited to watch as the Lucerne project continues to progress. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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