Comstock Mining stock charges up 338% after buying a majority stake in lithium-ion battery recycler Linico

• Comstock will pay $10.75 million in cash and stock for a 64% stake in Linico.
• Lead recycler Aqua Metals is also taking a stake in Linico in $2 million transaction.
• Linico plans to increase its investment in Singapore's Green Li-ion, a clean technology maker.

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 will use proceeds from the stake sales to increase its strategic investment in Singapore-based clean technology maker Green Li-ion Pte Ltd., with plans to buy Green Li-ion's patented process equipment, enabling the production of 99.9% pure lithium-ion cathodes.

Comstock noted that International Energy Agency has projected demand for lithium will significantly increase to fulfill global demand for electric vehicles.

This week, Peridot Acquisition, a special acquisition company, or SPAC, said it planned to merge with lithium-Ion battery recycler Li-Cycle.