Mackay Gold & Silver Up 14% as it Agrees to Buy U.S.-Based Comstock's Nevada Mining Assets
Mackay Gold & Silver (MACK.V) was last seen up 14% on Monday after the company said it entered into a definitive agreement with Comstock (LODE) to acquire Comstock's mining assets in Storey County and Lyon County in Nevada.The company will pay Comstock US$20 million in cash and two-million of its shares of Mackay on closing, followed by a further US$7 million payable within 18 months in a combination of cash and shares, plus contingent future consideration."In this one transaction, we are simultaneously unifying the main lodes (veins) in the Comstock District under single ownership for the first time, adding significant ounces and infrastructure, and de-risking the future of the project by securing development site optionality," said Mackay Chief Executive Darwin Green. "As we integrate this new highly prospective land package into our medium to long-range exploration planning, the near-term focus for Mackay remains squarely on our initial 20,000-meter drilling program at the Occidental-Brunswick Lode that is just now getting underway."With the deal, the company's total land holdings expand by 70% to 4,343 hectares, it said.Mackay shares were last seen up C$0.34 to C$2.80 on the TSX Venture Exchange.Price: $2.80, Change: $+0.34, Percent Change: +13.82%
