Comstock Fuels Approved for $152 Million Allocation for Oklahoma Qualified Private Activity Bonds
Comstock Fuels, a subsidiary of Comstock (NYSE: LODE), has secured approval from the Oklahoma State Treasurer's Office to issue up to $152 million in qualified private activity bonds. This allocation represents a significant milestone for financing the company's first 400,000 barrel per year commercial demonstration facility in Oklahoma.
The approval includes allocations from Oklahoma's Economic Development Pool, Exempt Facilities Pool, and Carryforward Pool, with support from the Oklahoma Development Finance Authority (ODFA). The financing package also includes $3 million in direct Oklahoma-based grants. The company is finalizing the selection of an investment banking partner for bond placement and underwriting.
Comstock Fuels, una sussidiaria di Comstock (NYSE: LODE), ha ottenuto l'approvazione dall'Ufficio del Tesoriere dello Stato dell'Oklahoma per emettere fino a 152 milioni di dollari in obbligazioni per attività private qualificate. Questa assegnazione rappresenta un traguardo significativo per il finanziamento della prima struttura dimostrativa commerciale da 400.000 barili all'anno dell'azienda in Oklahoma.
L'approvazione include assegnazioni dal Pool per lo Sviluppo Economico dell'Oklahoma, dal Pool delle Strutture Esenti e dal Pool di Carryforward, con il supporto dall'Oklahoma Development Finance Authority (ODFA). Il pacchetto di finanziamento include anche 3 milioni di dollari in sovvenzioni dirette basate in Oklahoma. L'azienda sta finalizzando la selezione di un partner bancario d'investimento per la collocazione e l'underwriting delle obbligazioni.
Comstock Fuels, una subsidiaria de Comstock (NYSE: LODE), ha conseguido la aprobación de la Oficina del Tesorero del Estado de Oklahoma para emitir hasta 152 millones de dólares en bonos de actividad privada calificados. Esta asignación representa un hito importante para financiar la primera instalación de demostración comercial de 400,000 barriles por año de la empresa en Oklahoma.
La aprobación incluye asignaciones del Pool de Desarrollo Económico de Oklahoma, del Pool de Instalaciones Exentas y del Pool de Carryforward, con apoyo de la Autoridad de Finanzas para el Desarrollo de Oklahoma (ODFA). El paquete de financiamiento también incluye 3 millones de dólares en subvenciones directas basadas en Oklahoma. La empresa está finalizando la selección de un socio bancario de inversión para la colocación y suscripción de los bonos.
Comstock Fuels, Comstock (NYSE: LODE)의 자회사, 는 오클라호마 주 재무부의 승인을 받아 1억5200만 달러의 자격을 갖춘 민간 활동 채권을 발행할 수 있게 되었습니다. 이 할당은 오클라호마에서 연간 40만 배럴의 상업적 시연 시설을 금융하는 데 있어 중요한 이정표를 의미합니다.
승인된 사항에는 오클라호마의 경제 개발 풀, 면세 시설 풀, 및 이월 풀에서의 할당이 포함되며, 오클라호마 개발 금융 기관(ODFA)의 지원도 포함됩니다. 자금 조달 패키지에는 오클라호마 기반의 직접 보조금 300만 달러도 포함됩니다. 회사를 위해 채권 배치 및 인수 작업을 위한 투자은행 파트너의 선정이 최종화되고 있습니다.
Comstock Fuels, une filiale de Comstock (NYSE: LODE), a obtenu l'approbation du Bureau du Trésorier de l'État de l'Oklahoma pour émettre jusqu'à 152 millions de dollars en obligations d'activité privée qualifiées. Cette attribution représente une étape significative pour le financement de la première installation de démonstration commerciale de 400 000 barils par an de l'entreprise en Oklahoma.
L'approbation comprend des attributions du Pool de Développement Économique de l'Oklahoma, du Pool des Installations Exemptées et du Pool de Carryforward, avec le soutien de l'Oklahoma Development Finance Authority (ODFA). Le paquet de financement comprend également 3 millions de dollars en subventions directes basées en Oklahoma. L'entreprise finalise actuellement la sélection d'un partenaire bancaire d'investissement pour le placement et l'underwriting des obligations.
Comstock Fuels, eine Tochtergesellschaft von Comstock (NYSE: LODE), hat die Genehmigung des Amtes des Staatskassenverwalters von Oklahoma erhalten, bis zu 152 Millionen US-Dollar in qualifizierten privaten Aktivitätsanleihen auszugeben. Diese Zuweisung stellt einen bedeutenden Meilenstein für die Finanzierung der ersten kommerziellen Demonstrationsanlage mit einer Kapazität von 400.000 Barrel pro Jahr des Unternehmens in Oklahoma dar.
Die Genehmigung umfasst Zuweisungen aus dem Oklahoma Economic Development Pool, dem Exempt Facilities Pool und dem Carryforward Pool, mit Unterstützung der Oklahoma Development Finance Authority (ODFA). Das Finanzierungsprogramm beinhaltet außerdem 3 Millionen Dollar an direkten Zuschüssen aus Oklahoma. Das Unternehmen finalisiert derzeit die Auswahl eines Investmentbankpartners für die Platzierung und Underwriting der Anleihen.
- Secured approval for $152 million in qualified private activity bonds
- Obtained $3 million in direct Oklahoma-based grants
- Plans for 400,000 barrel per year commercial demonstration facility
- None.
Insights
The $152 million private activity bond allocation secured by Comstock Fuels marks a transformative development in the company's financing strategy. This tax-exempt funding mechanism typically reduces borrowing costs by 20-30% compared to traditional corporate bonds, potentially saving millions in annual interest expenses.
The strategic selection of Oklahoma proves astute, as the state's aggressive pursuit of energy infrastructure development through the Economic Development Pool, Exempt Facilities Pool and Carryforward Pool demonstrates exceptional commitment. The additional $3 million in direct grants further strengthens the project's financial foundation.
The planned 400,000 barrel per year biorefinery represents a critical proof-of-concept for Comstock's Bioleum™ technology. At current renewable fuel market prices and with federal incentives, this facility could potentially generate significant annual revenues. The municipal bond structure also provides these key advantages:
- Lower cost of capital through tax-exempt status
- Longer maturity periods than traditional corporate debt
- Enhanced project creditworthiness through government backing
The imminent selection of an investment banking partner for bond placement suggests the project is progressing toward financial close. This financing package could serve as a template for future facilities, potentially accelerating Comstock's expansion plans while maintaining an efficient capital structure.
The biorefinery project demonstrates remarkable foresight in infrastructure planning. The 400,000 barrel annual capacity positions the facility at an optimal scale for commercial demonstration while maintaining operational efficiency. This capacity allows for:
- Sufficient throughput to validate commercial viability
- Economies of scale in logistics and operations
- Flexibility in feedstock sourcing and product distribution
Oklahoma's strategic location offers exceptional advantages for a biorefinery. The state's robust energy infrastructure, including extensive pipeline networks and rail connections, provides efficient distribution channels for both feedstock supply and product delivery. The pending site selection will likely prioritize locations with strong logistics capabilities and existing industrial infrastructure.
The project's integration of feedstock, site infrastructure and offtake agreements signals a comprehensive approach to facility development. This integrated strategy typically reduces operational risks and enhances long-term viability. The emphasis on creating a "new standard for domestic energy production" suggests implementation of advanced process controls and automation systems, potentially setting benchmarks for future biofuel facilities.
OKLAHOMA CITY, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE: LODE) today announced that its subsidiary, Comstock Fuels Corporation (“Comstock Fuels”), was approved by the Oklahoma State Treasurer’s Office to issue up to
This allocation of up to
This overall approval by the Oklahoma State Treasurer’s Office comes under the Oklahoma Private Activity Bond Allocation Act and would consist of allocations from the Oklahoma Economic Development Pool, the Oklahoma Exempt Facilities Pool, and the Oklahoma Carryforward Pool. The Oklahoma Development Finance Authority (“ODFA”) sponsored this bond allocation to support the State’s essential infrastructure projects with Comstock’s first Oklahoma commercial biorefining facility.
“This allocation is a foundational component of our overall capital and financing plans for Comstock Fuels, including funding each of our planned Bioleum™ Refineries in the U.S. with dedicated project financing,” said Chad Michael Black, Director of Business Development at Comstock Fuels. “Oklahoma has taken a leadership role in accelerating advanced domestic energy solutions and the support from the State Treasurer’s Office and the ODFA underscores our strong alignment with Oklahoma for developing, deploying and operating diverse, scalable and essential energy infrastructure for our communities.”
“We are rapidly achieving the critical prerequisites for securing the project financing needed to build our first commercial demonstration facility, with over
Private activity bonds under the Internal Revenue Code (the “Code”) are described generally as any bond: (1) of which more than
The Federal Tax Reform Act of 1986 established limits on the volume of private activity bonds that may be issued in a state during any calendar year. To ensure compliance with federal law, the Oklahoma legislature passed the Oklahoma Private Activity Bond Allocation Act.
Most private activity bonds must be sold on a taxable basis. However, the Code grants exceptions when certain bonds can be sold on a tax-exempt basis (“Qualified Private Activity Bonds”). Such bonds, with certain exceptions, are subject to the federal alternative minimum tax. The Code also imposes a limitation on the amount of Qualified Private Activity Bonds which may be issued by a state in any calendar year.
About Comstock Fuels Corporation
Comstock Fuels Corporation (“Comstock Fuels”) delivers advanced lignocellulosic biomass refining solutions that set industry benchmarks for production of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel (“SAF”), and other renewable Bioleum™ fuels, with extremely low carbon intensity scores of 15 and market-leading yields of up to 140 gallons per dry metric ton of feedstock (on a gasoline gallon equivalent basis, or “GGE”), depending on feedstock, site conditions, and other process parameters. Comstock Fuels additionally holds the exclusive rights to intellectual properties developed by Hexas Biomass Inc. (“Hexas”) for production of purpose grown energy crops in liquid fuels applications with proven yields exceeding 25 to 30 dry metric tons per acre per year. The combination of Comstock Fuels’ high yield Bioleum refining platform and Hexas’ high yield energy crops allows for the production of enough feedstock to produce upwards of 100 barrels of fuel per acre per year, effectively transforming marginal agricultural lands with regenerative practices into perpetual “drop-in sedimentary oilfields” with the potential to dramatically boost regional energy security and rural economies.
Comstock Fuels plans to contribute to domestic energy dominance by directly building, owning, and operating a network of Bioleum Refineries in the U.S. to produce about 200 million barrels of renewable fuel per year by 2035, starting with its planned first 400,000 barrel per year commercial demonstration facility in Oklahoma. Comstock Fuels also licenses its advanced feedstock and refining solutions to third parties for additional production in the U.S. and global markets, including several recently announced and other pending projects. To learn more, please visit www.comstockfuels.com.
About Comstock Inc.
Comstock Inc. (NYSE: LODE) innovates and commercializes technologies that are deployable across entire industries to contribute to energy abundance by efficiently extracting and converting under-utilized natural resources, such as waste and other forms of woody biomass into renewable fuels, and end-of-life electronics into recovered electrification metals. Comstock’s innovations group is also developing and using artificial intelligence technologies for advanced materials development and mineral discovery for sustainable mining. To learn more, please visit www.comstock.inc.
Comstock Social Media Policy
Comstock Inc. has used, and intends to continue using, its investor relations link and main website at www.comstock.inc in addition to its Twitter, LinkedIn and YouTube accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contacts
For investor inquiries:
RB Milestone Group LLC
Tel (203) 487-2759
ir@comstockinc.com
For media inquiries or questions:
Colby Korsun
Comstock Fuels Corporation
fuels@comstockinc.com
Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. 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.
FAQ
What is the value of the bond allocation approved for Comstock Fuels (LODE) in Oklahoma?
What is the planned production capacity of Comstock Fuels' (LODE) Oklahoma facility?
How much grant funding has Comstock (LODE) received from Oklahoma for their biorefinery project?
What are the funding sources for Comstock Fuels' (LODE) Oklahoma facility?
