Comstock Metals Ltd. Announces Closing of Sale of QV Gold Project
Vancouver, BC / March 1, 2019 – Comstock Metals Ltd. (TSX.V: CSL) (the “Company”) is pleased to announce that it has closed the previously announced sale (the “Disposition”) by the Company to White Gold Corp. (“White Gold”) (TSX.V: WGO) of the property known as the QV Gold Project (the “Property”). The Property covers 16,335 hectares (40,000 acres) within the White Gold District of the Yukon Territory, approximately 70 kilometres south of Dawson City, Yukon.
As consideration for the Disposition, White Gold made a cash payment of $375,000 and issued an aggregate of 1,500,000 common shares of White Gold (the “Subject Shares”) and 375,000 share purchase warrants (“Warrants”). Each Warrant is exercisable to acquire one additional common share of the Company for a period of three years from the closing date of the Disposition (the “Closing Date”) at an exercise price of $1.50.
In connection with the completion of the Disposition, the Company paid a finders’ fee to Red Cloud Klondike Strike Inc., an advisor to the Company, consisting of $11,775 in cash, 67,790 Subject Shares and 13,125 Warrants. As well, pursuant to the terms of an agreement with Lambent Consulting Inc., the entity through which the Company’s Interim CEO, Steven Goldman, provides services to the Company, Lambent Consulting Inc. was paid a bonus payment consisting of $11,250 in cash, 45,000 Subject Shares and 11,250 Warrants. The foregoing fees were approved by written consent obtained from a majority of the Company’s disinterested shareholders.
All securities issued and issuable in connection with the Disposition are subject to a statutory hold period expiring on June 29, 2019. In addition, the Subject Shares are subject to a voluntary hold period pursuant to which (i) 35% of the Subject Shares shall be released on the date which is four months following the Closing Date; (ii) 35% of the Subject Shares shall be released on the date which is eight months following the Closing Date; and (iii) the balance of the Subject Shares shall be released on the date which is twelve months following the Closing Date.
For further details regarding the Disposition, please refer to the press release of the Company dated January 14, 2019 available on SEDAR at www.sedar.com.
About Comstock Metals Ltd.
Comstock Metals Ltd. is an exploration company with several resource projects located in North America. Presently evaluating opportunities in the battery metal space, Comstock secured the Rawhide Cobalt-Silver Project in Ontario, adding to its advanced gold project, the Preview SW Project in Saskatchewan. Comstock also has a joint venture with, and equity investment in, E3 Metals Ltd. (TSX.V: ETMC) a Petro-Lithium company located in Alberta, Canada. For more information about E3 Metals, please visit their website: www.e3metalscorp.com.
For more information about Comstock Metals Ltd., please visit www.comstock-metals.com or contact:
Steven H. Goldman
Interim President, CEO and Director
Comstock Metals Ltd.
Cautionary Note Regarding Forward Looking Information
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
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