Rye Patch banks $1.4 Million from fourth quarter royalty payment
Vancouver, British Columbia, January 28, 2016 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) announces that it has received its fourth quarterly royalty payment for 2015 of CDN $1,405,000 (USD $965,500) from its Net Smelter Return royalty on the Rochester mine located along the Oreana trend in Pershing County, Nevada.
The total of the royalty payments received for 2015, is approximately CDN $6,208,000 (CDN $4,137,000 received in 2014).
William C. Howald, the Company’s President and CEO commented that, “The royalty income remains a welcome source of non-dilutive funding during this turbulent and devalued market and keeps the company on secure financial footing.”
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company led by a seasoned management team that has participated in major discoveries totaling over 100-million ounces of gold. The team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects along the emerging Oreana trend and the prolific Cortez trend. Benefitting from its strong financial position, the Company’s strategy is to balance development and exploration risk, creating value by:
- Advancing the Lincoln Hill project toward production;
- Pursuing a world class discovery – Garden Gate and Patty – contiguous to and on strike with Barrick’s Goldrush deposit; and
- Seeking new project opportunities and accretive transactions.
The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, please visit our website at www.ryepatchgold.com.
‘William Howald’
William C. (Bill) Howald, CEO & President
Rye Patch Gold Corp
info@ryepatchgold.com
Tel.: (604) 638-1588
Fax: (604) 638-1589
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur’s mineral resources and reserves); the reliability of calculation of precious metal recoveries; the receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses; fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Under a dime a share, with a P/E ratio of 12.6
It’s been hovering around a dime for a long time. It’s just a matter of time before investors finally pick them up on their radar, and realize that they are one of the few Jr Explorers with cashflow, drills turning, and making actual progress in this environment. I hope it stays low for a while longer so I can build on my position over time throughout 2016.
I’m not sure I actually believe the above statement, that they are advancing their projects….
I own shares in this company, to declare my status.
As I see it, they mostly use there royalty income to buy back shares, so they can issue options to insiders.
Since this is a time when mining assets are extremely cheap historically, I believe better use of their royalty income could be made by investing that income, not in share buybacks, but in new land acquisition.
I don’t agree with the the statement “they mostly use there royalty income to buy back shares, so they can issue options to insiders.” If you read their prior press releases or listened to Bill in his last few interviews they only used UP TO 10% of the NSR to buyback shares. The OTHER 90% was used for advancing Lincoln Hill, exploring Garden Gate and Patty, Operations, and they bought some contiguous land packages, which made sense. To say they spend most of the royalty on share buy backs is not correct.
BILL HOWALD DISCUSSES THE PHILOSOPHY BEHIND THE RYE PATCH SHARE BUY BACK.
I asked Bill to explain to us his philosophy behind the Rye Patch share buy back.
Here is his very candid response;
“Thanks Al,
That was a great segment. To more completely answer you question. We have looked at a number of “opportunities” and have been surprised by their valuation and the lack of supporting technical information for that valuation. In other words, lots of money for crap. The idea behind the share buy back is if we are willing to look at outside opportunities for purchase and they are crap, why would we invest in something that is real and has the technical merits and is undervalued – Rye Patch. We are taking 10% of our royalty stream and purchasing and cancelling RPM shares. The remaining 90% is sufficient to complete our programs and put cash away for the Lincoln Hill capex needs. Everyone wins.”
William C. (Bill) Howald
CEO & President
http://www.kereport.com/2015/11/03/bill-howald-discusses-philosophy-rye-patch-share-buy/
I retract my last comment above. Rye Patch has been staking additional land.
” (From about 2 weeks ago) William Howald, President and CEO commented, “The gold and silver mineral trend and associated structural features is sizeable with over 25 kilometres of strike. At the north end of the zone is the Florida Canyon mine; at the south is our 100% owned Gold Ridge project, and in the middle are the new Panther Canyon claims. The tremendous size of the trend suggests it could host multiple, significant gold and silver deposits, and Rye Patch is seizing the opportunity as one of the few remaining groups still exploring in Nevada. Staking the additional land and acquiring the large upside potential along what appears to be a major precious metal trend positions Rye Patch for more discoveries in west-central Nevada.”
Sorry CFS – I didn’t see this retraction of the prior statement. Regardless, only “up to 10%” of prior Net Smelter Royalties were used for share buybacks, and they have been pretty clear that their main objective is moving Lincoln Hill forward, and proving out a larger resource base to help with the Feasibility Study and mine economics.
Cheers.
$1.4 million banked. Cha-Ching!
“The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders.” – Bingo