Comstock Metals to Propose Reduction of Capital by Way of a Distribution of the Common Shares of E3 Metals and White Gold Held by Comstock to Its Shareholders
Vancouver, Sep 3, 2020 - Comstock Metals Ltd. (TSXV: CSL) ("CSL" or the "Company") announces that the board of directors of the Company will be proposing to its shareholders that they approve, at the Company's annual and special meeting to be held on October 19, 2020, a reduction of the capital of the Company's common shares, which approval is being sought in connection with a proposed distribution by the Company of an aggregate of 1,000,000 common shares of E3 Metals Corp. (TSXV: ETMC) and 1,387,210 common shares of White Gold Corp. (TSXV: WGO) (the "Distribution Shares") to shareholders of the Company. If approved, it is anticipated that the distribution of the Distribution Shares would be effected as a reduction in the capital of the common shares of the Company (the "Return of Capital"). The Return of Capital, even if approved by shareholders, will remain subject to the approval of the TSX Venture Exchange and the final approval of the Company's board of directors. A further press release will be issued if and when such approvals are obtained to advise of the applicable dates associated with the Return of Capital.
If approved, the Distribution Shares would be distributed to the Company's shareholders on a pro rata basis. No fractional interests in Distribution Shares will be distributed in connection with the Return of Capital, and any such interests will be rounded down to the nearest whole Distribution Share.
Additional disclosure regarding the proposed Return of Capital will be provided in an information circular to be mailed to shareholders and posted on www.sedar.com in connection with the upcoming annual and special meeting of shareholders. Thereafter, the Company will provide additional disclosure regarding the proposed Return of Capital and distribution of the Distribution Shares if and when it receives all approvals to complete such transactions.
About Comstock Metals Ltd.
Comstock Metals Ltd. is a diversified mineral exploration company advancing its wholly owned projects located in North America and holds several equity positions in companies with large mineral resources.
- 100% owned Preview SW Gold Project in Saskatchewan (43-101 Resource Stage)
- Joint Venture and equity investment with E3 Metals Corp. (TSXV: ETMC), a petro-lithium company developing lithium extraction technology in Alberta. (43-101 Resource Stage)
- Equity investment in White Gold Corp. (TSXV: WGO) developing its portfolio of properties located in the White Gold District of the Yukon (43-101 Resource Stage)
For more information about Comstock Metals Ltd., please visit www.comstock-metals.com or contact:
Steven H. Goldman
President, CEO and Director
Comstock Metals Ltd.
Phone: (416) 917-1533
Email: s.goldman@goldmanhine.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.