Comstock Inc. ( LODE ) shares are trading higher premarket on Friday after the company unveiled a strategic partnership and investment agreement with Marathon Petroleum Corporation ( MPC ) .

Under this collaboration, Comstock Fuels Corporation, a subsidiary of Comstock, has signed definitive agreements with Marathon's subsidiaries, including buying Comstock Fuels equity worth $14 million.

The investment comprises $1 million in cash and $13 million in payment-in-kind assets from Marathon, which includes equipment, intellectual property and other resources from its renewable fuel demonstration facility in Madison, Wisconsin.

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

Comstock Fuels intends to leverage the Madison Facility to enhance its current pilot production operations in Wausau, Wisconsin.

The investment aims to accelerate the commercial development of Comstock’s lignocellulosic biomass refining solutions, which are designed to enable oil producers to convert untapped biomass into “drop-in” hydrocarbon fuels compatible with existing infrastructure.

The transaction grants Marathon board observation rights at Comstock Fuels and reaffirms both parties’ commitment to finalizing an offtake agreement, joint development agreement and warrant agreement by May 31, 2025.

In February, Comstock’s subsidiary amended its exclusive license agreement with RenFuel K2B AB. This amendment allows Comstock Fuels to utilize RenFuel's patented catalytic esterification process for refining its proprietary Bioleum biointermediates.

Price Action: LODE shares are up 11.7% at $2.680  premarket at the last check Friday.

Read Next:

Comstock Expands Global Reach With Renewable Fuel Deal In Pakistan: Details