Mackay Gold & Silver to Acquire the Historic Big Bonanza, Consolidating the Entire 6 km Length of the Comstock Lode, Nevada, USA Consolidates the northern section of the Comstock Lode, host to multiple historic mines
Mackay Gold & Silver to Acquire the Historic
Big Bonanza, Consolidating the Entire 6 km
Length of the Comstock Lode, Nevada, USA
Consolidates the northern section of the Comstock Lode, host to multiple historic mines
including the Big Bonanza – the largest and richest "bonanza" orebody mined on the
Comstock
Expands Mackay's land package by 392 hectares to 4,747 hectares (47.5 km
2
)
Upon completion of the acquisition, Mackay will control all the major historical mines within the
district, which together produced an estimated 8.2 million ounces of gold and 192 million
ounces of silver between 1859 and 1926
Property to be acquired for US$6.3 million in cash and shares funded from existing treasury
Vancouver, British Columbia--(Newsfile Corp. - September 10, 2026) - Mackay Gold & Silver Corp.
(TSXV: MACK) (OTCQB: MKGSF) ("
Mackay
" or the "
Company
") is pleased to announce that it has
entered into a definitive agreement with Consolidated Virginia Mining Company and Marshall Earth
Resources, Inc., privately owned companies controlled by Mr. Hugh Roy Marshall (collectively, the
"Seller"), for the purchase of 100% of the Seller's mining properties within the Comstock District in
Storey and Lyon counties, Nevada (the "Property").
Total consideration for the Property is US$6.3 million, consisting of US$2.0 million in cash and US$2.0
million in Mackay common shares payable on closing, and a further US$2.3 million in cash payable on
the first anniversary of closing. The 392-hectare Property will expand Mackay's total land holdings to
4,747 ha (47.5 km
2
), further expanding the largest consolidated property package in Comstock District
history and uniting the whole Comstock Lode under single ownership for the first time.
"The Big Bonanza was the crown jewel of the many rich 'bonanza' orebodies mined on the Comstock
Lode," stated Darwin Green, CEO and Director of Mackay. "This acquisition adds the very productive
northern section of the Comstock Lode to our existing extensive land package, and for the first time in
the district's 167-year history the entirety of the 6-km long vein structure is now consolidated under a
single owner – Mackay Gold & Silver. It is an immense privilege to secure this opportunity, and I would
like to acknowledge the vision and dedication of Mr. Hugh Roy Marshall in carrying out the original
consolidation around the Big Bonanza that he initiated some 40-years ago."
History of the Acquired Property
Once Mackay completes the acquisition of the Property, Mackay will control the whole Comstock Lode,
from the lode's southern spurs in American Flat through Gold Hill and Virginia City to the northern limit of
historically productive Comstock ground.
The newly acquired ground encompasses the following
historical Comstock Lode mines - Consolidated Virginia, California, Ophir, Mexican, Union, Sierra
Nevada, and Utah. Two of those, the Consolidated Virginia and California, hosted the most productive
mining ground in the history of the nineteenth-century American West, the Comstock's legendary "Big
Bonanza". First discovered on the 1,100-foot level of the Consolidated Virginia in 1872 and developed
and extracted over the next ten years, the Big Bonanza produced 1,131,900 tonnes of ore at a calculated
average assay grade of 87.4 g/t gold and 1,834 g/t silver (Hudson, D.M., 2003). The orebody measured
only about 1,000 feet on strike, up to 340 feet in width, and some 600 feet in depth.
By the early 1880s the Consolidated Virginia was widely considered exhausted. It wasn't. In 1886, the
mine discovered a second bonanza which, on its own, was the third most valuable orebody produced on
the Comstock, after the Big Bonanza and the Crown Point-Belcher bonanza. Beginning around 1900, a
series of smaller, high-grade ore bodies were discovered trailing northward and downward from the
1,800-foot level of the Consolidated California and Virginia. These orebodies extended through the
Ophir, Mexican, and Union claims and kept the deep levels of the north end of the district in production
until 1920.
Mackay's historical research has recently uncovered detailed maps of these bonanzas, which the
Company intends to use to guide future exploration targeting. In addition, the same research efforts
provided the first hints at the existence of gold and silver deposits in the upper levels of the north end
mines similar to the historical "reserve bodies" that United Comstock Mines and Merger Mines
developed and partially exploited in the 1920s in the Gold Hill section of the lode. Confirming that
evidence will require substantial further work, which Mackay intends to advance as part of its ongoing
exploration programs.
Figure 1. Claim map of Mackay Gold & Silver Corp.'s mineral tenures in the historic Comstock
District, Nevada, highlighting the newly acquired ground included in this news release.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/12351/313745_8b2f16e324fc996e_001full.jpg
Terms of the Purchase Agreement
The Company's wholly owned U.S. subsidiary, Mackay Precious Metals Inc., a Delaware corporation
(the "Purchaser"), has entered into a Property Purchase Agreement (the "Agreement") effective as of
September 9, 2026 (the "Effective Date") with Consolidated Virginia Mining Company and Marshall
Earth Resources, Inc., each a Nevada corporation (collectively, the "Seller"), and Mr. Hugh Roy Marshall,
pursuant to which the Purchaser will acquire all of the Seller's right, title, and interest in and to the
Property. The Property consists of 39 patented mining claims and certain additional fee lands in Storey
County, Nevada, 27 unpatented mining claims in Storey County, Nevada, and two unpatented mining
claims in Lyon County, Nevada, totalling approximately 392 hectares, and is directly contiguous with
Mackay's existing land package.
Aggregate Purchase Price
In consideration for the Property, the Purchaser will:
Make a US$2,000,000 cash payment to the Seller on the Closing Date (as defined below);
Issue to the Seller or its designee 934,575 common shares of Mackay (the "Consideration
Shares") having an aggregate value of US$2,000,000 based on the volume-weighted average
trading price for the twenty trading days immediately prior to the Effective Date;
Make a US$2,300,000 cash payment to the Seller on the first anniversary of the Closing Date (the
"Anniversary Payment"); and
Consent to the Seller's reservation of the NSR Royalty described below.
The Anniversary Payment will be secured by a deed of trust recorded against the Property in Storey
County and Lyon County, Nevada, to be reconveyed and terminated upon payment in full. Any portion of
the Anniversary Payment not paid when due will bear interest at 6% per annum.
NSR Royalty
On closing, the Seller will reserve a 2.0% net smelter returns royalty on the Property (the "NSR Royalty").
The NSR Royalty will not apply to any portion of the Property that is subject to an existing royalty as at the
Effective Date. The Purchaser may repurchase one-half of the NSR Royalty, being an undivided 1.0%
royalty interest, at any time for US$2,000,000, and will hold a right of first refusal in respect of the
remaining 1.0% royalty interest.
Share Trading Restrictions
The Consideration Shares will be subject to a hold period expiring four months and one day following the
date of issuance, in accordance with applicable securities laws. The Consideration Shares may not be
transferred prior to the date that is four months and one day after the date of issuance. For a further
period of fifteen months following expiry of that hold period, the Seller may not dispose of Consideration
Shares without first delivering written notice to the Purchaser, following which the Purchaser will then
have fifteen business days to elect to purchase those shares, or to designate a purchaser, on terms no
less favourable than those set out in the notice, and if the Purchaser does not make such election the
Seller may dispose of the Consideration Shares within 30 days. The Seller is also restricted from
disposing of common shares of Mackay through the TSX Venture Exchange (the "Exchange") or any
other public trading platform in any amount exceeding 10% of the average daily trading volume of the
Mackay common shares on that platform over the preceding twenty trading days.
Closing
Completion of the transaction is subject to the approval of the Exchange, including approval of the
issuance of the Consideration Shares, and to the satisfaction or waiver of the closing conditions set out
in the Agreement. Closing will take place on the fifth business day following satisfaction or waiver of
those conditions, or on such other date as the parties may agree in writing (the "Closing Date"). Either
party may terminate the Agreement if any of the closing conditions have not been satisfied or waived by
November 30, 2026, provided that the Purchaser may extend that date by up to three months (or such
other period as agreed between the parties) by making a non-refundable cash payment of US$300,000
to the Seller, which amount is creditable against the Anniversary Payment.
No finder's fee or commission is payable in connection with the transaction. The transaction is an arm's
length transaction and does not constitute a Non-Arm's Length Party transaction under the policies of the
Exchange.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved
by Darwin Green, Chief Executive Officer and director of the Company, and a Qualified Person under
National Instrument 43-101. Mr. Green is not independent of the Company. Mr. Green has not verified the
historical data pertaining to the Property disclosed in this press release, including the historical
production estimates, as such data is historical in nature and the original data is not readily available to
the Company.
Mackay Gold & Silver Corp.
Mackay Gold & Silver Corp. is a Nevada-focused gold and silver exploration company with 100% control
of a large, consolidated land package in one of America's richest, most productive and oldest mining
districts. With an estimated 8.2 million ounces of historical gold production and 192 million ounces of
silver produced between 1859 and 1926 from so called 'bonanza orebodies' that averaged 35 g/t gold
and 726 g/t silver, the Comstock district is recognized as one of America's highest grade epithermal
systems and an attractive setting for modern discovery. Led by an experienced team with a strong track
record of discovery, development, and value creation, Mackay is well funded and committed to delivering
shareholder value through disciplined exploration and responsible resource development.
On behalf of the Board of Directors
Darwin Green,
Chief Executive Officer and Director
Further Information
For further information, please contact:
Mackay Gold & Silver Corp.
Suite 405, 375 Water Street,
Vancouver, British Columbia V6B 5C6
Canada
Contact:
Darwin Green
Telephone:
604-283-0798
Email:
Website:
mackaycorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
References
Hudson, D.M., 2003, "Epithermal alteration and mineralization in the Comstock District, Nevada,"
Economic Geology
, v. 98, p. 367–385.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the
meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and
current expectations of the Company with respect to future business activities and operating
performance. Forward-looking information is often identified by the words "may", "would", "could",
"should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and
includes, among other things, information regarding: the ability of the Company to carry out its
exploration and land consolidation strategies and the timeline thereof, the potential confirmation of gold
and silver deposits on the Property, the discovery potential for the Comstock District, the receipt of
Exchange approval, the satisfaction of the conditions precedent under the Agreement, and the
completion of the acquisition of the Property on the terms described in this news release, or at all.
Readers are cautioned that forward-looking information is not based on historical facts but instead
reflect management of the Company's expectations, estimates, or projections concerning future results
or events based on the opinions, assumptions and estimates of management considered reasonable at
the date the statements are made. Although the Company believes that the expectations reflected in
such forward-looking information are reasonable, such information involves risks and uncertainties, and
undue reliance should not be placed on such information, as unknown or unpredictable factors could
have material adverse effects on future results, performance or achievements of the Company. Among
the key factors that could cause actual results to differ materially from those projected in the forward-
looking information are, among other things, the following: the ability of the Company to obtain regulatory
approval, changes in general economic, business and political conditions, including changes in the
financial markets; changes in applicable laws; stock market volatility that may adversely affect the price
of the Company's securities; the ability of the Company to carry out its exploration and land consolidation
activities as currently contemplated; and compliance with extensive government regulation. This forward-
looking information may be affected by risks and uncertainties in the business of the Company and
market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has
attempted to identify important risks, uncertainties, and factors which could cause actual results to differ
materially, there may be others that cause results not to be as anticipated, estimated or intended. The
Company does not intend, and do not assume any obligation, to update this forward-looking information
except as otherwise required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/313745