Company News – Wed 17 May, 2017

Ryepatch Gold strengthens cash position.

Vancouver, British Columbia, May 15, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announced today that it has received an election notice from Coeur Rochester, Inc. (“Coeur”) to purchase the Company’s 3.4% net smelter return royalty (the “Royalty”) from the sale of silver and gold processed from the Rochester Mine for US$5.0 million.
Under the Net Smelter Returns Royalty Agreement between the Company and Coeur dated June 27, 2013 (the “Royalty Agreement”), Coeur retained a right of first refusal to purchase the Royalty from the Company in the event that the Company should wish to sell or transfer the Royalty.
William C. Howald, the Company’s President and CEO commented, “The US$5,000,000 purchase price brings approximately one year’s worth of royalty payments forward.  With the Rochester royalty ending in 2018, it seemed prudent to have the cash now and available as we ramp up our mining operation at Florida Canyon.”
On May 9, 2017, the Company notified Coeur that it had received an offer (the “Offer”) from a third party to purchase the Royalty for US$5,000,000 payable in cash, which was accepted by the Company. Coeur notified the Company that it elected to purchase the Royalty on the same terms and conditions set out in the Offer, which is to close within 30 business days.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Nevada based, Tier 1, mining company engaged in the mining and development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon Gold Mine, Rye Patch Gold Corp. now controls a trend-scale platform with operations, replacement assets and exploration upside. The combination of operations and exploration concentrated along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value added potential. For more information, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
Rye Patch Gold Corp
William C. (Bill) Howald, CEO & President
For additional information contact:
info@ryepatchgold.com
Tel.: (604) 638-1588
Fax: (604) 638-1589
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.

RYE PATCH GOLD CORP.
HEAD OFFICE & INVESTOR RELATIONS

1500-701 West Georgia
Vancouver, BC V7Y 1C5
Canada
Tel: (604) 638-1588
RYE PATCH GOLD US INC.
Suite 9 – 220 South Rock Blvd.
Reno, Nevada
USA 89502
Tel: (775) 856-4900
STAY CONNECTED

Featuring:
Bill Howald
View related posts on:

Comments:
  1. On May 17, 2017 at 10:09 pm,
    Excelsior says:

    Congrats to Bill and the Rye Patch team. Another well executed transaction.

  2. On May 17, 2017 at 11:46 pm,
    Imtiaz Rahmat says:

    Integra was acquired with their main asset with a PEA showing a potential for 123,000 ounces per year over a 10 year mine life for $530 million. Rye patch ramping up to commercial production at half the Integra ounces per year along with other significant resource opportunities worth one quarter of Integra. Integra PEA shows a cost of $86/tonne cad, anyone know how Rye Patch compares? Could Rye Parch also be acquired as gold rebounds?
    Thoughts?

    • On May 18, 2017 at 8:39 am,
      Excelsior says:

      Imtiaz Rahmat – Rye Patch as a producer at Florida Canyon, with development assets like Lincoln Hill & Wilco in Nevada has been severely undervalued relative to their peers, but is hard to compare with Integra, which was still just an advanced Development-stage project in Quebec. So one is already a producer and the other got acquired before going into production. The other factor is the Canadian bias where Canucks like to bid up companies in Canada to a premium valuation.

      Rye Patch has never really been understood. First of all they were punished far too hard when going up against Coeur in their legal dispute over the land they staked, and yet, when they won that case and got the Net Smelter Royalty from Coeur, the market shrugged it off, and it has paid the company many multiple millions since it is has been in place.

      The market recognize the value of the NSR which allowed them to buy up much of the adjacent land to their other projects, buy back a small amount of their stock, handle operations without constantly going back to the marketplace for dilutive capital raises, and to continue developing Lincoln Hill, Wilco, and Garden Gate Pass. If a Canadian company with some highfalutin promoters was behind that story the company would have been trading at 2-3 times it’s current valuation.

      Now that Rye Patch has even taken things to the next level from Explorer, to Developer, to Producer, it is like the market isn’t even aware of it or all the success they’ve had. As a result, (RPM) (RPMGF) remains substantially undervalued as a new producer.

      Even this news above of selling the Royalty back to Coeur for a 5 million payment which forward pays much of what they would have received over the next year or so was a brilliant way to raise capital without destroying the shareholder value through dilution, and hardly anybody seemed to notice.

      Rye Patch is developing a district size operation and eventually will get it’s due, but my only concern is that they get acquired before they finally get the chance to spread their wings. Coeur could actually be the suitor…..

      ** Check out this map which shows their projects and proximity to Coeur’s Rochester mine. I could see Coeur deciding to swallow up that whole area under it’s umbrella, but it would be best for current shareholders if they waited for Rye Patch to get re-rated by the marketplace first.

      https://www.streetwisereports.com/images/RyePatch630.jpg

  3. On May 19, 2017 at 6:30 am,
    Excelsior says:

    Rye Patch Gold Corp. – Industrial Alliance Securities
    Commissioning Progressing Well In Spite Of The Weather
    George Topping & Alex MacIssac

    (5 page report on Rye Patch Gold)

    https://www.docdroid.net/PMH7Le6/rye-patch-gold-corp-industrial-alliance-securities.pdf.html