Q: How is Comstock planning on realizing value from the Opportunity Zones? Isn’t all of Storey County and most all of Silver Springs, Nevada included in the approved Opportunity Zones?
A: Thank you for the question, we were very foresighted (since 2003) and fortunate to HAVE established such a massive property position in Storey County, NV, in the world-class, historic Comstock Lode District and then continued expanding our land acquisitions in Silver Springs over the past 4 years.
These investments proved timely when the U.S. Treasury confirmed that all of Storey County, NV, and substantially all of Silver Springs, NV, had been certified as Qualified Opportunity Zones. These two, adjacent, Northern Nevada areas represent one of the biggest land Opportunity Zones with tremendous logistics (airports, trains, and a highway network connecting to port cities) and access to some of the biggest economies in the world, and primarily, our immediate access to California. Because of our proximity (just over 10 miles to the California border, we are one truck day away from 50 million people.
Sierra Springs Opportunity Fund, Inc. (“SSOF”), a qualified opportunity zone fund, separate from Comstock Mining Inc., also sponsored Sierra Springs Enterprises, Inc. (“SSE”), a qualified opportunity zone business. It is uniquely located in a rapidly developing, high-tech region to create a consolidated, diverse interdependent real-estate based opportunity, delivering an aggregate net annual compounded internal rate of return (“IRR”) in excess of 40%, with exit values of over $1.85 billion. Comstock owns 6.7 million shares and expects that the Company’s fully diluted ownership will be approximately 9% of SSOF. Based on recent investment values, our investment of $330,000 is already worth over $3.3 million.
SSE has already secured qualified and strategically located real estate, water rights and conservation-based businesses located within the immediate proximity of three surging metropolitan areas in Northern Nevada: Reno-Sparks, Fernley, and Carson City-Dayton and owns and operates the Silver Springs Regional Airport and the Sierra Clean Processing, (a 180,000+ square foot) manufacturing facility already being occupied by new, multiple, innovative, conservation-based, growth businesses.
Northern Nevada Growth Region
Northern Nevada is the spirited hub and a vital connection between the western states and one of the largest U.S. economies in California. Nevada is exceptionally pro-business, with a strong corporate law and one of the top three friendliest states for business development.
Ranking #1 in the United States for new migration, Nevada growth is complementing and benefitting from California’s reciprocating outflow. The area has regional access to over 50 million people. The area’s low humidity and sunny climate is remarkably year-round, attracting billions of dollars of new capital investments from high-tech and data companies.
Expanding industrial complexes, including Tahoe Reno Industrial Center (TRIC), have drawn major development for companies like Amazon, Apple, Blockchains LLC, Google, Panasonic, Switch, Tesla, and Walmart Distribution. And with this existing growth, dozens of new companies announce decisions for expanding, establishing, or relocating their businesses to Northern Nevada. These developments represent billions of dollars in current capital deployments and high-tech investments.
We are poised for explosive growth as this region continues to attract some of the best, most technologically advanced and innovative companies in the country.
Our future here is bright!!