Mackay Gold & Silver (TSX-V:MKAY) has completed its US$20 million ($27.97 million) acquisition of Comstock’s (NYSE:LODE) Nevada mining assets, expanding its landholdings in the Comstock district by 70%.
This brings Mackay’s landholdings to a total of 4,343 hectares, consolidating the largest claim package held by one company in Comstock district history.
CEO Darwin Green says the closing of the acquisition is a ‘pivotal’ advancement in the company’s goal of consolidating the Comstock properties to undertake modern, large-scale exploration.
“The historic Comstock district hosted some of the most productive mining ground in 19th century America, and we believe there is a lot more gold and silver to be found,” Green says.
The deal adds 100% of Comstock’s Silver City lode properties across Storey County and Lyon County, unifying the district’s three major vein systems — the Silver City lode, Occidental-Brunswick lode, and Comstock lode — under single ownership for the first time.
“The acquisition adds two oxide gold-silver deposits supported by recent S-K 1300 historical estimates, plus a permitted heap leach and Merrill-Crowe processing facility providing future development optionality,” Green says.
“Mackay is well funded, and, with two drill rigs already turning, our team is eager to unlock Comstock’s potential.”
Executed under a 21 June 2026 agreement, Mackay acquired all membership interests in Comstock Mining, Comstock Processing, and Comstock Exploration and Development, plus all shares of Comstock Real Estate.
Comstock also assigned approximately US$4 million in cash collateral for reclamation surety bonds on the American Flats processing facility and Lucerne Mine.
Mackay paid US$20 million in cash and issued 2 million common shares to Comstock at closing. An additional US$7 million is due by 21 December 2027, with up to US$2 million payable in shares subject to TSX Venture Exchange approval.
A contingent US$10 million payment also applies if Mackay makes a construction decision or undergoes a change of control valued at US$500 million or greater within seven years.
Comstock retains a 1.5% net smelter return royalty, less existing royalty burdens, with specific provisions for Lyon County parcels. Under the terms, Mackay can repurchase the royalty for US$3.5 million, which increases to US$7 million if the seven-year contingent period lapses.
The Comstock District produced an estimated 8.2 million ounces (Moz) of gold (Au) and 192Moz of silver (Ag) between 1859 and 1926 from ‘bonanza’ lodes averaging 35.00 grams per tonne Au and 726.00g/t Ag.
Mackay notes the transaction has received conditional TSX Venture Exchange approval and remains subject to final exchange approval, with the 2 million shares subject to hold periods extending through February 2029.
Mackay Gold & Silver is an explorer focused on acquiring and advancing mineral properties within the historical Comstock District of Nevada.
Write to Paula Fabe at Mining.com.au
Images: Mackay Gold & Silver
