Comstock Forms Joint Venture With Lakeview Energy
Comstock Mining Inc. (NYSE: LODE) has acquired a 50% stake in Lakeview Energy LLC’s subsidiary, LP Biosciences LLC, and 100% of MANA Corporation for a total of 7.7 million restricted shares. They will retrofit a facility in Iowa for processing up to 200,000 pounds of industrial hemp daily. The hemp market is projected to grow from $1.9 billion in 2020 to $6.9 billion by 2025. Expected revenues from the new facility are anticipated to reach over $409 million by 2024, creating cash flow and supporting industry advancements.
- Acquisition of a 50% interest in LP Biosciences enhances production capacity in the hemp sector.
- Projected revenue growth of over $409 million by 2024 indicates strong financial potential.
- Partnership with experienced agriproducts management firm Lakeview Energy enhances operational efficiency.
- None.
Acquires
VIRGINIA CITY, Nev., July 29, 2021 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the execution of a series of agreements with Lakeview Energy LLC (“Lakeview”) and its subsidiaries, pursuant to which the Company acquired
Industrial Scale Infrastructure
Industrial hemp is an extraordinary natural resource with tens of thousands of known applications, including food, feed, fuel, and fiber, and an array of emerging applications in batteries, bioplastics, and other renewable alternatives to fossil fuel derived products. However, hemp’s ability to produce over 400 natural phytochemicals, such as cannabidiol (“CBD”) and cannabigerol (“CBG”), has recently garnered significant attention as some of those chemicals are seen to have compelling potential in health and wellness applications. The corresponding green rush propelled global demand and sales of industrial hemp products to an estimated
“The processing infrastructure needed to achieve those aspirations does not exist today at the scales and sophistication expected of mature supply chains for comparable commodities,” said MANA’s Chief Executive Officer, William McCarthy. “The absence of large scale capacity represents the hemp industry’s most significant bottleneck today. MANA is addressing that deficiency by acquiring and partnering with experienced agriproducts management teams and pre-existing industrial scale facilities in adjacent agricultural markets. We are excited to do so today with Comstock, Lakeview, and the LPB Facility, and we’re looking forward to making a market leading contribution to the debottlenecking and evolution of the industry.”
Mature Agriproducts Management
Lakeview is an experienced agriproducts management company that owns and operates three renewable fuels facilities, including two 55 million gallon dry mill corn ethanol facilities located in Ohio and Iowa, and a 10 million gallon per year biodiesel production facility located in Missouri. Importantly, LPB’s LPB Facility is ideally co-located with Lakeview’s ethanol facility in Iowa, where the two facilities can exploit operational and other synergies to maximize throughput, profitability, and cash flow. Comstock’s and MANA’s agreements with Lakeview call for Lakeview to provide construction, operating, administrative, logistics, commodities, risk management and other services to LPB as the parties work together to build, operate and grow the LPB Facility. MANA additionally agreed to provide a suite of complimentary technology, marketing and other management services, with a focus on acquiring and using pre-existing and new feedstock and offtake arrangements to fill the LPB Facility.
“Industrial hemp has remarkable potential in several important respects, including its potential for new jobs and stimulating economic, environmental and social value creation in our community,” said Jim Galvin, Lakeview’s Chief Executive Officer. “We’re pleased to partner with Comstock and MANA as we upgrade and use the LPB Facility to provide comprehensive hemp extraction, remediation, and refinement services at scales that are currently unheard of in the hemp industry.”
Industry Leading Scale, Quality, Compliance, and Flexibility
Comstock’s Executive Chairman and Chief Executive Officer, Corrado DeGasperis, added: “We are proud to have assembled a world class asset with a team of industry veterans, process engineers, and partners to rapidly retrofit and commence operations with the LPB Facility, thereby setting a global standard for quality, compliance, consistency, flexibility and speed at an extraordinary scale. Once retrofits are complete in mid-2022, the LPB Facility will generate significant free cash flow by servicing the most astute, demanding, and rapidly growing buyers of wholesale hemp products with custom tailored solutions.”
The LPB Facility is conservatively expected to scale up to its initial nameplate capacity exceeding 200,000 pounds per day and 36,500 tons per year of industrial hemp over its first three years of operations, as it extracts, remediates, and refines oil from industrial hemp to generate annualized revenues exceeding
| 2022 | 2023 | 2024 | 2025 | |||||
| Throughput (tons per year) | 5,000 | 9,125 | 18,250 | 36,500 | ||||
| Throughput (pounds per day) | 27,397 | 50,000 | 100,000 | 200,000 | ||||
| Revenue ( | $ | 12,500 | $ | 53,157 | $ | 154,657 | $ | 409,824 |
Ecosystem of Strategic Feedstocks, Processes and Products
DeGasperis concluded: “Comstock is focused on the rapid and simultaneous maximization of financial, natural, and social impact, in large part by building an ecosystem of strategic extraction and valorization facilities with complimentary feedstocks and products. In this example, the LPB Facility’s revenue estimates are based only on the oil fraction of industrial hemp, which corresponds to a small portion of total feedstock biomass. The rest of that biomass is mostly comprised of cellulose with many known co-product applications, as well as some very exciting new applications that we are actively evaluating for use in our existing and planned new decarbonization efforts.”
About Comstock Mining Inc.
Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.
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Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.
| Contact Information | ||
| Comstock Mining Inc. P.O. Box 1118 Virginia City, NV 89440 www.comstockmining.com | Corrado De Gasperis Executive Chairman & CEO Tel (775) 847-4755 degasperis@comstockmining.com | Zach Spencer Director of External Relations Tel (775) 847-5272 Ext.151 questions@comstockmining.com |
FAQ
What stake did Comstock Mining acquire in LP Biosciences?
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