Comstock Mining Obtains Stockholder Approval for Conversion of Preferred Stock and Signs Restructuring of JV

Comstock Mining Inc. (NYSEMKT:LODE) announced today the approval from the holders of Comstock Mining’s convertible preferred stock for the conversion of all such convertible preferred stock to common stock, substantially simplifying the capital structure, eliminating super-voting rights, eliminating future preferred stock dividends and additionally eliminating significant royalty obligations on the future production from some of our richest properties.
Comstock Mining also announced that it has signed the amendment relating to the previously announced restructuring of its Joint Venture agreement with Northern Comstock LLC.
As quoted in the press release:

Pursuant to the definitive agreement with John V. Winfield to amend the terms of the operating agreement for its Northern Comstock LLC joint venture, the Company reduced its remaining capital contributions from $31.05 million to $9.75 million. The amendment permits such capital contributions to be made in the form of cash, or in certain circumstances, the Company’s common stock, par value $0.000666 per share (“Common Stock”). In addition, any prior or future royalty commitments from the Northern Comstock properties to Mr. Winfield were eliminated. There are no provisions for any issuances of preferred stock, in any form.
In connection with the approval of the amendments to the Company’s convertible preferred stock that resulted in the conversion of all such convertible preferred stock into Common Stock, the Company declared and will pay a one-time dividend of 127 shares of Common Stock per share of preferred stock.  Adoption of the amendments required approval of affirmative vote of the holders of a majority of the outstanding shares of the convertible preferred stock and submission of the amendments to the Charters with the Secretary of State of the State of Nevada.
Over 99% of all voted convertible preferred shares were voted in favor of the transaction with less than 1% disapproving.  A total of over 89% of all preferred shareholders voted.

Corrado De Gasperis, President & CEO, stated:

Substantially all of our preferred shareholders voted overwhelmingly to approve this transaction that has now been completed.  This is a watershed event for the Company and reaffirms investor confidence and support of our plans. I want to thank John Winfield and our Board for taking the steps necessary to maximize value for all of our shareholders. The completed transaction has strengthened our balance sheet by significantly reducing liabilities and dramatically lowering our future capital and mining costs.
These transactions reflect the strong confidence and direct support of our largest investors and a significant improvement in our capital structure.  This positions us extremely well for growing and maximizing the intrinsic value for all of our shareholders.

Connect with Comstock Mining Inc. (NYSEMKT:LODE) to get you Investor Kit