Long-Term Debt

Long-term debt consisted of the following:



Note Description	September 30, 2017			December 31, 2016
Debenture - (net of discount and deferred issuance costs of $778,505)	$	9,251,954		$	—
Note Payable (Caterpillar Equipment)	1,313,289			1,540,629
Note Payable - (Lynch House)	—			186,000
Note Payable (Silver Springs Property)	—			3,310,851
Finance Obligation (Varilease)	—			1,964,882
Note Payable (Daney)	—			868,398
Note Payable (Donovan Property)	—			300,733
Note Payable (V&T)	—			298,955
Note Payable (White House)	—			275,433
Note Payable (Gold Hill Hotel)	—			239,216
Note Payable (Dayton Property "Golden Goose")	—			207,562
Notes Payable - Other	—			277,636
Subtotal	10,565,243			9,470,295
Less current portion	(287,417		)	(483,669		)
Long-term portion of long-term debt	$	10,277,826		$	8,986,626

Long-Term Debt Obligations

GF Comstock 2 LP

On January 13, 2017, the Company issued an 11% Senior Secured Debenture (the "Debenture") due 2021 in an aggregate principal amount of $10,723,000. The use of proceeds included refinancing substantially all of the Company’s current obligations, except the amount due to Caterpillar Finance and the Lynch House note. This included paying off the Silver Springs property, Varilease and others. The Debenture was issued at a discount of approximately $568,000 and the Company incurred issuance costs of approximately $528,000. The Debenture requires a Make Whole Payment totaling approximately $688,000 if paid any time prior to or at maturity. Total principal is due on January 13, 2021. The Debenture requires acceleration of payment of accrued interest, principal, and the Make Whole Amount from all net proceeds received upon sale of any assets of the Company.

Interest is payable semi-annually. For the first two years, interest will be payable, at the option of the Company, either in cash or in the form of additional Debentures (or a combination thereof). For the third and fourth years, interest will be payable only in cash. The Company paid the interest payment for the first six months, in cash, on June 23, 2017, and elected to pay the next interest payment in cash that is due on January 1, 2018.

The Debenture is collateralized by (1) substantially all of the assets of the Company, and (2) a pledge to 100% of the equity of the subsidiaries of Comstock Mining Inc.

Hard Rock Nevada Inc., an employee owned entity, and another related party who is a significant shareholder of the Company, participated in this financing.

Loan Commitment

In March 2017 (and amended in June and September 2017), the Company entered into a loan commitment agreement that provides up to $7.5 million in borrowing capacity and expires in 2021 with an 11% interest rate. Principal amounts borrowed under this agreement are not due until 2021. Until January 1, 2019, interest on any borrowings will be payable in cash and/or in the form of additional indebtedness under the agreement, at the Company’s option. No amounts have been borrowed under this agreement and the Company has $7.0 million (after consideration of fees due at the time of borrowing) of available borrowing capacity as of September 30, 2017.