Benzinga | Jun 22, 2021 06:46AM EDT

Comstock Acquires Renewable Process Solutions For $3.5M

Comstock Mining Inc. (NYSE:LODE) ("Comstock" or the "Company") today announced the acquisition of 100% of the equity of Renewable Process Solutions, Inc. ("RPS"), an advanced process engineering and renewable technology development company, in exchange for 1,000,000 restricted shares in the Company's common stock, valuing the transaction at approximately $3.5 million.

RPS and/or Mr. Bobbili have designed and built 21 advanced renewable fuels production facilities since 2006, and RPS currently provides engineering, procurement, and construction ("EPC") services for the renewable metals, mining, petrochemical, and fuels industries. RPS also provides advanced equipment manufacturing services through its affiliated manufacturing facilities in the United States and India, at consistently superior qualities and rates.

LINICO Corporation ("LiNiCo"), Comstock's investment in lithium-ion battery ("LIB") recycling, has currently engaged RPS for the design and construction of critical renewable processes, including crushing, separating and lithium extraction technologies for LiNiCo's new, state-of-the-art LIB recycling manufacturing facility at 2500 Peru Drive, in the Tahoe Reno Industrial Center, in Storey County, Nevada.

"Almost instantaneously, RPS President & CEO Rahul Bobbili and his network of engineering and advanced manufacturing experts integrated themselves into the LiNiCo team, enhancing designs, ensuring quality, reducing capital requirements and shortening lead times," stated Corrado De Gasperis, Comstock's Executive Chairman and Chief Executive Officer. "As the RPS engineers began developing breakthrough lithium extraction and recycling processes for us in real time, with their existing know-how, we also recognized compelling applications and synergies across our existing and planned new lines of business."

In addition to the acquisition, Mr. Bobbili, as Chief Process Engineer, will oversee and direct all EPC processes for LiNiCo. LiNiCo has commenced ordering crushing and separation equipment, for deliveries during the fourth quarter of 2021 and the first quarter of 2022, on plan, for commencement of production of black mass and lithium carbonate in the first and second quarters of 2022, respectively. LiNiCo's main processing permit application is expected to be filed this month.

"We see LIBs as a potent source of industrial ore, and as with any ore, we need the right team, technology, and infrastructure to mine and process it," continued Mr. De Gasperis. "We are very excited to complete this transaction, expand our capacity and add both the new recycling technologies that RPS has and is developing, and most especially, adding Rahul to our senior team."

About 500,000 tons of expired LIBs with upwards of $921 million in strategic metals are landfilled annually today. A recent report by Yole D?veloppement estimated annual growth to more than 9 million tons and $26 billion by 2040.

Mr. De Gasperis concluded, "Rahul's capacity for designing, procuring and commissioning innovative, environmentally and economically-focused engineering solutions, with exceptional environmental, health and safety track records, places him and his teams at the forefront of our senior ESG leadership team."