Comstock Inc. (AMEX:LODE) shares are trading higher premarket on Tuesday.

On Monday, the company disclosed the execution of a binding agreement between Comstock Fuels Corporation and Gresham's Eastern (Pvt) Ltd in Pakistan.

As per the deal, Comstock Fuels agreed to grant Gresham's exclusive project and site development rights in Pakistan.

This will enable Gresham's to deploy Comstock Fuels' proprietary and patented lignocellulosic biomass refining technologies to produce sustainable aviation fuel and other renewable fuels in Pakistan.

Gresham will oversee the development, financing, construction, and management of renewable fuel facilities utilizing Comstock Fuels' proprietary Bioleum refining technologies.

Each refinery will operate under a site-specific license to meet Comstock Fuels' performance and quality standards.

In return, Comstock Fuels will receive a 20% equity stake in each Bioleum Refinery, along with royalties of 6% on product sales and engineering fees equal to 6% of the total capital and construction costs.

Gresham plans to establish a demonstration facility in Lahore, Pakistan, with an annual biomass processing capacity of 75,000 metric tons.

This facility will generate critical operational and economic data to scale up to a commercial plant capable of processing 1 million metric tons per year.

The initiative aims to meet growing global demand for sustainable aviation fuel production, positioning Pakistan as a key player in renewable fuels.

Gresham intends to utilize locally sourced agricultural and forestry residues along with sustainably grown energy crops, unlocking significant export potential.

The project supports Pakistan's goal of achieving 60% renewable energy by 2030.

Price Action: LODE shares are up 1.29% at $0.8920 premarket at the last check Tuesday.

Read Next:

• Comstock Fuels Lands $3 Million Boost To Build Next-Gen Renewable Refinery In Oklahoma: Details

Image via Shutterstock.