Comstock Mining stock charges up 338% after buying a majority stake in lithium-ion battery recycler Linico
- Date: 17-Feb-2021
- Source: Business Insider
- Sector:Financial Markets
- Country:Middle East
Comstock Mining stock charges up 338% after buying a majority stake in lithium-ion battery recycler Linico
Comstock Mining shares more than quadrupled Wednesday, gaining as much as 338%, after the gold and silver miner said it has bought a majority stake in Linico Corp, a lithium-ion battery recycling company, a move that comes at a time of growing use of the energy source.
Comstock said it took a 64% ownership stake in Linico with $4.5 million in cash and 3 million shares of its restricted common stock. As part of the transaction, Aqua Metals, a lead battery metal recycler, is investing $2 million for a 10% stake in Linico.
Shares of Comstock jumped by as much as 338% to hit an intraday high of $9.85 after closing at $2.25 in Tuesday's session. The shares have since pared gains to $7.06. Comstock's stock price at the start of 2021 was valued at just over $1.
Meanwhile, Aqua Metals shares gained as much as $33, hitting an intraday high of $8.06.
"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," said Comstock CEO Corrado De Gasperis in a statement.
Comstock said Linico recently purchased a battery metal recycling facility from Aqua Metals. Linico