Stocks

Why Comstock (LODE): Is up 300% in premarket

Mining Inc. of Comstock. LODE, Wednesday’s stock is + 5.63 percent, as it blasted more than four times on high volume to pace all premarket gainers. The mineral exploration and manufacturing company disclosed transactions in which it acquired rights for up to a 64 percent stake in Linico Corp., which is a recycling company for lithium-ion batteries (LIB). In cash, Comstock will pay $4.5 million and 3.0 million shares of its limited common stock, for a total of $10.75 billion.

Comstock shares rose by 307.6 percent and the trading volume of 13.0 million shares was already above the full-day average of 12.7 million shares for the last 30 days. Aqua Metals Inc. recently bought a battery metal recycling plant in Nevada from Linico, and Aqua Metals is spending $2 million in Linico for a 10 percent interest.

“We see spent lithium-ion batteries as a potent industrial mineral, and – as with any resource, we need the right team, technology, and infrastructure to extract and process it. This transaction assembles all three into an ecosystem of aligned partners, operating systemically on a common goal.” 

Comstock Chief Executive Corrado De Gasperis.

The newly available data shows that just 0.2 percent of the public float accounted for Comstock short interest. Over the last three months, the stock has risen 120.6 percent.