Mackay Gold & Silver Corp. (MKGSF) has entered into a definitive agreement to acquire Comstock Inc.’s Nevada mining assets, a deal that adds further to its consolidation of the historic Comstock district. In fact, this is now the largest consolidated land package in the 167-year history the district, highlights Brien Lundin, executive editor of Gold Newsletter.
The acquisition will expand Mackay’s land position by 70% to 4,343 hectares. More importantly, it will bring the district’s three major vein systems — the Silver City Lode, Occidental-Brunswick Lode, and Comstock Lode — under single ownership for the first time.
Mackay Gold & Silver Corp. (MKGSF)
The deal also adds two oxide gold-silver deposits, Lucerne and Dayton, that together host historical resources of 605,000 ounces of gold and 5.88 million ounces of silver in the measured and indicated categories – plus another 297,000 ounces of gold and 2.5 million ounces of silver inferred.
The purchase price includes $20 million in cash and two million Mackay shares at closing, with another $7 million payable within 18 months in cash and shares. There is also a potential $10 million contingent payment tied to a construction decision or change of control. Mackay says it has more than $60 million on its balance sheet, giving it the ability to make these payments while still funding exploration.
This looks like a transformative acquisition for Mackay Gold & Silver. It adds ounces, infrastructure, historical mines, and a dominant land position in one of America’s great historic gold-silver districts.
Recommended Action: Buy MKGSF.
