U.S. Tonogold to acquire Lucerne project from Comstock Mining for $15 mln

U.S.-based mining company Tonogold Resources Inc. has agreed to acquire 100 percent of the Lucerne project including the Lucerne gold or silver deposit in Storey County, Nevada from precious metals mining company Comstock Mining Inc.

Under the transaction, Tonogold will pay $15 million to Comstock, of which a non-refundable deposit of $1 million was paid on January 23, 2019, and the other $14 million will be paid later.

The company said that it will fund the acquisition as well as the advancement of the project over the next 12-months by the way of an initial public offering.

The deal will close on March 31, 2019. Tonogold will earn a 51 percent stake in the Lucerne gold project by investing $20 million into the project comprised of some 1,200 acres of mining deposits.