Nevada
(State or Other
Jurisdiction of Incorporation)
|
001-35200
(Commission File Number)
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65-0955118
(I.R.S. Employer
Identification Number)
|
¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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|
COMSTOCK MINING INC.
|
|
Date: May 16, 2019
|
By:
|
/s/ Corrado De Gasperis
|
|
|
Name: Corrado De Gasperis
Title: Executive Chairman, President and Chief Executive Officer
|
|
Three Months Ended
March 31, |
||||||||
|
2019
|
|
2018
|
||||||
REVENUES
|
|
|
|
||||||
Revenue - mining
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenue - real estate
|
37,598
|
|
|
|
22,850
|
|
|
||
Total revenues
|
37,598
|
|
|
|
22,850
|
|
|
||
|
|
|
|
||||||
COSTS AND EXPENSES
|
|
|
|
||||||
Costs applicable to mining revenue
|
505,393
|
|
|
|
728,904
|
|
|
||
Real estate operating costs
|
10,424
|
|
|
|
7,091
|
|
|
||
Exploration and mine development
|
225,867
|
|
|
|
209,538
|
|
|
||
Mine claims and costs
|
150,954
|
|
|
|
180,231
|
|
|
||
Environmental and reclamation
|
53,451
|
|
|
|
58,068
|
|
|
||
General and administrative
|
660,366
|
|
|
|
726,620
|
|
|
||
Total costs and expenses
|
1,606,455
|
|
|
|
1,910,452
|
|
|
||
|
|
|
|
||||||
LOSS FROM OPERATIONS
|
(1,568,857
|
|
)
|
|
(1,887,602
|
|
)
|
||
|
|
|
|
||||||
OTHER INCOME (EXPENSE)
|
|
|
|
||||||
Interest expense
|
(461,137
|
|
)
|
|
(383,340
|
|
)
|
||
Other income (expense)
|
194,929
|
|
|
|
(213,961
|
|
)
|
||
Total other income (expense), net
|
(266,208
|
|
)
|
|
(597,301
|
|
)
|
||
|
|
|
|
||||||
NET LOSS
|
$
|
(1,835,065
|
|
)
|
|
$
|
(2,484,903
|
|
)
|
|
|
|
|
||||||
Net loss per common share – basic and diluted
|
$
|
(0.02
|
|
)
|
|
$
|
(0.05
|
|
)
|
|
|
|
|
||||||
Weighted average common shares outstanding — basic and diluted
|
79,080,429
|
|
|
|
49,863,424
|
|
|
|
Three Months Ended
March 31, |
||||||||
|
2019
|
|
2018
|
||||||
OPERATING ACTIVITIES:
|
|
|
|
||||||
Net loss
|
$
|
(1,835,065
|
|
)
|
|
$
|
(2,484,903
|
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||||
Depreciation, amortization, and depletion
|
586,921
|
|
|
|
826,928
|
|
|
||
Accretion of reclamation liability
|
5,710
|
|
|
|
4,876
|
|
|
||
Gain on sale of properties, plant, and equipment
|
—
|
|
|
|
(26,000
|
|
)
|
||
Amortization of debt discounts and issuance costs
|
71,623
|
|
|
|
102,492
|
|
|
||
Net loss on early retirement of long-term debt
|
151,531
|
|
|
|
2,621
|
|
|
||
Payment-in-kind interest expense
|
470,246
|
|
|
|
—
|
|
|
||
Change in make-whole liability with Pelen, LLC
|
(135,162
|
|
)
|
|
216,147
|
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||||
Prepaid expenses and other assets
|
24,934
|
|
|
|
25,001
|
|
|
||
Accounts payable
|
53,573
|
|
|
|
3,543
|
|
|
||
Accrued expenses and other liabilities
|
(286,855
|
|
)
|
|
230,368
|
|
|
||
NET CASH USED IN OPERATING ACTIVITIES
|
(892,544
|
|
)
|
|
(1,098,927
|
|
)
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||||
Proceeds from principal payment on note receivable
|
130
|
|
|
|
119
|
|
|
||
Proceeds from sale of mineral rights and properties, plant, and equipment
|
—
|
|
|
|
26,000
|
|
|
||
Proceeds from deposits on Membership Interest Purchase Agreement
|
1,950,000
|
|
|
|
—
|
|
|
||
Purchase of mineral rights and properties, plant and equipment
|
(365,000
|
|
)
|
|
—
|
|
|
||
Change in reclamation bond deposit
|
(33,428
|
|
)
|
|
—
|
|
|
||
NET CASH PROVIDED BY INVESTING ACTIVITIES
|
1,551,702
|
|
|
|
26,119
|
|
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||||
Principal payments on long-term debt
|
(1,565,687
|
|
)
|
|
(99,005
|
|
)
|
||
Proceeds from the issuance of common stock
|
813,561
|
|
|
|
1,185,452
|
|
|
||
Common stock issuance costs
|
(85,093
|
|
)
|
|
(52,568
|
|
)
|
||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
|
(837,219
|
|
)
|
|
1,033,879
|
|
|
||
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(178,061
|
|
)
|
|
(38,929
|
|
)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
488,657
|
|
|
|
2,066,718
|
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
310,596
|
|
|
|
$
|
2,027,789
|
|
|
|
|
|
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
||||||
Cash paid for interest
|
$
|
34,460
|
|
|
|
$
|
17,509
|
|
|
|
|
|
|
||||||
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
||||||
Common Stock Issuance Costs
|
$
|
—
|
|
|
|
$
|
200,000
|
|
|
Issuance of common stock (in advance) to purchase membership interest
|
$
|
—
|
|
|
|
$
|
585,000
|
|
|