Comstock MiningInc. said March 29 that it has partnered with American Mining and TunnelingLLC and American Drilling Corp. LLC, collectively known as the American Group, forUS$5 million on underground mine development, drilling and mining services in connectionwith its Lucerne and Dayton projects.

The company will issue 9,000,000 shares of its common stock,with a value of at least 56 cents per share, to the American Group in exchange forfuture drilling, mine development and underground mining services in connectionwith but not limited to the two projects.

"By investing with and in us, the collaboration with theAmerican Group has achieved another level of strategic partnering as we positionour Nevada-based platform for the next level of performance," said ComstockPresident and CEO Corrado De Gasperis.

"Our industry is emerging from three tough years of rationalizedexploration and underdevelopment. We continue partnering with companies in goodjurisdictions, having broad development opportunities and high quality, growth-minded,management teams that have invested in their district and positioned themselvesfor growth," said Steve Elloway, president and CEO of American Group.