Published: January 24, 2017 |

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Comstock Mining Inc. has secured a strategic refinancing with an affiliate of GF Capital, LLC, that retires substantially all of the company’s obligations and resumes drilling at the Dayton resource area.

“This strategic refinancing strengthens our balance sheet, provides great liquidity and enables us to resume the drilling and development plans for the Dayton mine. This represents the second successful transaction with GF Capital and further develops our strategic, resource-based relationship with an outstanding capital partner,” said Corrado De Gasperis, executive chairman and chief executive officer of Comstock Mining.

The company issued an 11 percent senior secured debenture due 2021 in the amount of $10,723,000. The debenture is secured by the pledge of the equity interests in all of the company’s subsidiaries and substantially all of the company’s assets. The company is required to prepay the debentures with the net cash proceeds from the sale of previously disclosed non-mining properties.

Until January 1, 2019, interest will be payable in cash and/or in the form of additional debentures, at the company’s option. Thereafter, interest will be payable in cash. The company has the right to redeem the debenture, at any time, at a redemption price equal to the outstanding principal balance, plus accrued and unpaid interest and a make-whole amount equal to seven months of interest. The debenture also includes customary default and cure provisions and, in the event of certain defaults, a default interest rate of 13.5 percent.

About Comstock Mining
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. The company began acquiring properties in the Comstock District in 2003. Since then, the company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and commenced production in 2012. The company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

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