Comstock Receives $20 Million and Closes Sale of Legacy Mining Assets to Mackay Precious Metals Inc.

Mackay Gold & Silver Corp. has completed the acquisition of 100% of Comstock Inc.'s legacy mining, processing, and real estate entities located in Nevada's Comstock District. The aggregate transaction value exceeds $45 million.

Upon closing, Mackay provided $20 million in cash and 2 million common shares of Mackay Gold & Silver Corp., valued at approximately $4.5 million. The deal structure includes a secured second-tranche payment of $7 million due within 18 months. Additionally, a contingent payment of up to $10 million will be triggered if Mackay proceeds with mine construction or undergoes a change of control within seven years.

Comstock retains a 1.5% NSR royalty on the sold properties, with a buyout option available for $3.5 million. This buyout amount doubles to $7 million if the contingent period lapses. Mackay assumes all reclamation obligations, liabilities, and a reclamation bond valued at approximately $8.75 million.

The transaction is expected to generate a non-taxable accounting gain of $10–12 million for Comstock. Comstock is pivoting from hard rock mining to renewable metals and solar recycling, a shift the company expects to yield approximately $1.5 million in annual operational savings.

Mackay Gold & Silver Corp. (MACK) announced the closing of its acquisition on June 22, 2026, a development that had already been fully priced into the stock prior to today’s release. The transaction consolidates the largest land package in the history of the Comstock District, totaling 4,343 hectares. For the first time, the Silver City, Occidental-Brunswick, and Comstock Lodes are unified under single ownership.

The deal adds historical resources from the Lucerne and Dayton deposits, along with a permitted, care-and-maintenance heap-leach and Merrill-Crowe processing facility with a capacity of approximately 4,500 tonnes per day. Additionally, the acquisition removes approximately $8.75 million in reclamation liabilities and bonds from Mackay’s balance sheet. The transaction also provides immediate liquidity and equity to Comstock, facilitating its strategic pivot. This news serves as a procedural milestone that confirms previously disclosed terms and does not introduce new financial or operational surprises.

Mackay Gold & Silver Corp. (TSX-V: MACK, OTCQB: MKGSF) is an exploration-stage gold and silver company focused on Nevada's historic Comstock District. Its flagship project is the Comstock District property, which covers 4,343 hectares and features the Occidental-Brunswick Lode, the Occidental South oxide zone, and acquired assets including the Lucerne and Dayton deposits. The company also includes a permitted, built heap-leach and Merrill-Crowe processing facility with a capacity of approximately 4,500 tonnes per day, which is currently on care and maintenance. The project is in the exploration and early-stage resource definition phase, and no proven or probable reserves exist. Historical resources are provided for geological context but do not comply with CIM/NI 43-101 standards.