A Very Special Update! – Wed 21 Feb, 2018

Update Letter from Bill Howald, President of Rye Patch Golld

Update from Rye Patch Gold
President & CEO William Howald:
To Rye Patch Shareholders: We started out the year with a bang and have been very busy moving the company forward. I want to take this opportunity to add some clarification to the actions taken by Rye Patch Gold Corp. in the past few weeks.
First, please know that the board and executive team weigh every major corporate decision against the benchmark of creating long-term shareholder value. We made a series of active decisions in reviewing the Rye Patch balance sheet as well as a review of our debt and made decisions based on ensuring the health of Rye Patch and growth for our shareholders.
The board created a Special Committee to identify these opportunities and approved a stock consolidation as well as a Bought Deal Private Placement financing in January. Each of these decisions is a part of the plan on moving the Company forward for shareholders.
As you know, the ramp-up of the Florida Canyon Mine faced a number of challenges through 2017 that we have worked to overcome, albeit at the cost of time and money. It would be unfortunate if, at the cusp of achieving our ultimate goal, it could be derailed by not having a sufficient cushion of funds to deal with any future requirements. Hence the need for the additional funds that come with the financing .
Being a shareholder myself, I have carefully weighed every decision and there is no doubt in my mind that this was the best course of action to ensure Rye Patch completes the job and begins to benefit from the value of the Florida Canyon mine and the entire Oreana Trend land package.
The financing, as outlined in the news releases dated January 17 and January 31, 2018, made available almost CAD$19 million on a net basis to our treasury, providing us with sufficient capital cushion to manage issues that may arise.
The Board of Directors of Rye Patch Gold Corp. has approved a process to review and evaluate potential alternatives that may further maximize value for Rye Patch’s shareholders through the appointment of a Special Committee comprised solely of independent directors. The Special Committee is chaired by Tim Baker and is comprised of Jonathan Challis, Charles Russell and John Mansanti, the current independent directors of Rye Patch Gold Corp. The Company’s ramp up at Florida Canyon will be unaffected by this review process.
We greatly appreciate our shareholders and all of our actions are undertaken to increase shareholder value.
With our December 2017 commercial production declaration, we will continue ramping up towards targeted production levels. The future is bright, and we are confident that we are moving in the right direction.
Thank you for your continued support.
Bill Howald
Rye Patch President, CEO and Founder
Attention OTCQX shareholders: The US trading
symbol remains RPMGF.
The symbol change was temporary and now reverts
back to the permanent listing.
All of the current investor info is right here.

Featuring:
Bill Howald

Comments:
  1. On February 21, 2018 at 8:30 pm,
    Rand says:

    whatever

  2. On February 22, 2018 at 3:52 am,
    Tim Curry says:

    I must say I was a little upset that my shares were reduced by 6.5 times and worried that the increased share price would only mean that it had a lot more room to fall and fall it has but I am going to look at this reduced price as a buying opportunity and buy more shares. In the past Rye Patch has made some very smart moves and I am going to trust that you do have all the shareholders best interests in mind when you make these big steps.

    • On February 22, 2018 at 7:57 am,
      Excelsior says:

      I’ve been trading Rye Patch since when they were staking their ground and battling with Coeur in court to win their royalty, and agree that they did a lot of things correct in the last few years, but my first cause for doubt was when they sold their royalty, because it was focused on a shorter term capital raise and NOT longer term value creation (as that would have involved hanging onto the royalty as metals prices are going to be rising thus increasing the margins they would have received).

      Also, they’ve continued to come back to the market for more and more capital raises instead of getting their production up and running sooner to start generating the revenues internally. The reverse stock split made sense, because you knew they were going to tap the equity markets again once their share count was reduced, but if they keep diluting the snot out of longer term holders, like most poorly run mining companies, then I’m getting ready to throw in the towel on them as my confidence has been broken.

      They were buying back their shares a few years ago with their royalty stream — and that I liked. Now they are just blowing out their share count again, and that is suicide for any investors that plan on getting a good return. By the time they get this Florida Canyon mine producing like they promised it would be last year, they’ll have to do another reverse split.

      It’s time to quit raising funds, and get the freaking mine delivering on production, and quickly. All the delays and money squandered is getting REALLY old, and for the first time in years, I question the resolve of this team. Sad.

      • On February 22, 2018 at 8:16 am,
        Rand says:

        I lost my patience with this management team last year. And recently, hiring another fellow to run the company whilst Howald deals with company “culture”. Now, looking at strategic options. This letter was a rambling mess that included that famous sociopathic logic stream of “I too am a shareholder”. All board members of this trainwreck are now on my black list. If they are on a board of any company that I am looking at, they are immediately disqualified from my investment dollars. They rank right up there with Harry Barr.

  3. On February 22, 2018 at 5:54 am,
    CFS says:

    I did not like the reverse split either. I sold half my shares as a consequence.
    However, I understand why…..potential listing problems from too low a share value.

    OFF TOPIC: Prior to the creation of the Department of Education, only one country (Australia) had students which tested better than the US.
    Guess where we are now? 17th.
    Do you know why? The education system has been taken over by a left-wing Union, which works for teachers, not students. The Union also favors policies of the U.N., a Marxist, anti-Capitalist organization.
    The education system was based on a religious-based merit system and is now replaced by a atheistic, non-values system.
    I am not a Christian or a Jew, but I am strongly opposed to the dropping of teaching moral values, based on Judeo-Christian ethics.

  4. On February 22, 2018 at 6:20 am,
    CFS says:

    Did you know the Department of Education was the creation of well-meaning, but stupid President Carter in 1980?
    Did you know the first mass grade school shooting did not occur until 1991?
    How about correlation between number of guns in neighborhood versus school shootings?
    Why are left-wing idiots trying to ban guns (an impossibility in reality) when school shooting actually inversely correlate with density of guns in neighborhood?