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http://otce.finra.org/DailyList
Rye Patch shareholders will receive 0.48 shares of Alio Gold plus $0.001 in cash for every Rye Patch share held. Matching TSX
Probably look at replacing the Management here also!
I'm going to have to vote against the merger! Our company is worth more than they are paying!
Looks like another great move!
March 19, 2018, Vancouver, BC – Alio Gold Inc (TSX, NYSE AMERICAN: ALO) (“Alio Gold” or the “Company”) and Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB:5TN) (“Rye Patch”) are pleased to announce they have entered into an agreement whereby Alio Gold will acquire, through a plan of arrangement (the “Arrangement”) all of the outstanding shares of Rye Patch. Alio Gold will host a conference call at 11:00am EDT (Toronto) time today to discuss the transaction and the details of the call can be found at the end of the release. Management from both Alio Gold and Rye Patch will participate in the conference call.
Under the Arrangement, each common share of Rye Patch will be exchanged for 0.48 common shares of Alio Gold. The offer implies a value of C$1.57 per Rye Patch share, a 35% premium to Rye Patch shareholders, based on the 20-day volume weighted average trading price of Alio Gold shares on the TSX and Rye Patch shares on the TSX.V for the period ending March 16, 2018. The offer values Rye Patch’s outstanding equity (undiluted) at approximately C$128 million. The number of Alio Gold shares to be issued will be approximately 39.0 million based on the issued and outstanding shares as of the announcement date, subject to adjustment for options, warrants and restricted stock units vested prior to the Arrangement. The transaction is expected to close on or about May 25, 2018. Existing Alio Gold and Rye Patch shareholders will own approximately 53% and 47% of the combined company, respectively, following the close of the transaction.
Transaction Highlights
Increased asset diversification – 165,000 ounces of gold production1 in 2018 from two open-pit, heap leach operations in the stable jurisdictions of Sonora, Mexico and Nevada, USA
Enhanced growth profile – potential for low-capital expansion to increase expected annual gold production at Florida Canyon
Improved cash flow generation to support development project – cash flow generation from two mines to support development of the feasibility stage Ana Paula project which is anticipated to produce 115,000 ounces of gold per year2
Enhanced capital markets profile and potential re-rating – increased market capitalization of the combined company has the ability to appeal to a broader shareholder base and improve share trading liquidity
Strong balance sheet – combined pro forma entity has approximately $74 million in cash and equivalents3 and $29 million in total debt3
“This transaction is consistent with our strategy to create a leading mid-tier precious metals company” said Greg McCunn, CEO of Alio Gold. “In addition to diversifying our asset base into one of the most attractive precious metal producing regions in the world, this transaction provides us with increased scale and liquidity to drive long term shareholder value. We see regional growth opportunities in Nevada and coupled with our high-grade, high-margin Ana Paula project, this transaction establishes a strong platform for future growth.”
In conjunction with the proposed transaction, Macquarie Bank Limited (“MBL”) has agreed not to exercise its right to require immediate repayment of the existing Florida Canyon project loan as a result of this change of control, subject to certain conditions. At the closing of the transaction, the outstanding principal owing on the MBL project loan is expected to be $15 million. MBL and the Company have commenced discussions regarding a restructuring of the loan at or after closing of the transaction and MBL has provided indicative terms for such a restructuring which remain subject to credit approval. The indicative terms for the restructuring envision the principal remaining at the closing of the transaction will be repaid over 12 equal quarterly payments along with accrued interest. Project loan type covenants including forward-looking financial ratios, cash sweep for early repayment of the loan and debt service and capital reserve account requirements would be replaced with a corporate guarantee and security from Alio Gold and certain of its affiliates. The Company intends to continue to work with MBL to seek final credit approval ahead of the close of the transaction.
Benefits to Rye Patch Shareholders
Immediate up-front premium of approximately 35% based on the 20-day volume weighted average prices of both companies while maintaining meaningful equity participation
Improved balance sheet with $45 million of pro forma net cash as at December 31, 20173 and the flexibility to support advancement of Rye Patch projects
Asset diversification with exposure to a second producing asset and meaningful ownership in Alio Gold’s high-grade, high-margin Ana Paula project
Expands operational capabilities, adding proven expertise in open pit mining and heap leaching
Combined company provides significant revaluation potential as a diversified company with growth opportunities
“When I founded Rye Patch twelve years ago, I envisioned creating a mid-tier, North American gold producer,” stated William C. Howald, Rye Patch’s President and CEO. “This business combination with Alio Gold achieves that goal and creates a company with gold mining operations located in two stellar mining jurisdictions, Mexico and Nevada, with tremendous exploration upside. The Alio Gold management team has a positive track record in Mexico and combined with Rye Patch will expect to repeat that success in Nevada.”
Benefits to Alio Gold Shareholders
Strengthens and de-risks portfolio with the addition of a second producing asset
Establishes an operating presence in Nevada, providing further geopolitical diversification
Provides near-term production growth while lowering combined cost profile
Strengthens Alio Gold’s ability to generate free cash flow on a per share basis
Incremental free cash flow to finance Ana Paula construction
Adds significant exploration potential with a large, district scale land package and strong pipeline of development and exploration opportunities
Management and Board
Alio Gold will continue to be managed by the executive team in Vancouver, Canada led by Greg McCunn as Chief Executive Officer and Colette Rustad as Chief Financial Officer. In addition, the Company will seek to retain Doug Jones from Rye Patch as its Chief Operating Officer.
Alio Gold’s Board of Directors will continue to be led by Chairman, Bryan Coates and Alio Gold have invited two directors from Rye Patch, Tim Baker and John Mansanti, to join the combined board. Committees are expected to be reconstituted at the first board of directors’ meeting following the close of the transaction.
Boards of Directors’ Recommendations
The Arrangement has been unanimously approved by the board of directors and the special committee of Rye Patch and will be subject, among other things, to the favourable vote of 66 2/3% of the Rye Patch common shares voted at a special meeting of shareholders called to approve the transaction. Officers and directors of Rye Patch as well as other shareholders including Primevest Capital Corp have entered into lock-up and support arrangements with Alio Gold under which they have agreed to vote in favour of the transaction. Capital West Partners has provided an opinion to the Rye Patch Board of Directors that the consideration offered is fair, from a financial point of view, to Rye Patch shareholders.
The Arrangement has been unanimously approved by the board of directors of Alio Gold and will be subject, among other things, to the favourable vote of a majority of the Alio Gold shareholders at its annual and special meeting. RBC Capital Markets has provided an opinion to the Alio Gold Board of Directors that the consideration offered is fair, from a financial point of view, to Alio Gold.
Deal Protection
In the event that the transaction is not completed, a termination fee of C$4.0 million is payable to either Alio Gold or Rye Patch, respectively, upon termination of this transaction by the terminating party on terms customary for a transaction of this nature. Rye Patch has also provided Alio Gold with certain other customary rights, including a right to match competing offers.
Timing
Full details of the Arrangement will be included in the management information circulars of Alio Gold and Rye Patch and both circulars are expected to be mailed to their respective shareholders on or about April 17, 2018. It is anticipated that both shareholder meetings and closing of the transaction will take place on or about May 25, 2018.
Advisors and Counsel
Alio Gold’s financial advisor is RBC Capital Markets, its legal advisors are Blake, Cassels & Graydon LLP in Canada and Paul, Weiss, Rifkind, Wharton & Garrison LLP in the United States. PI Financial Corp. has been engaged as a Strategic Advisor for Alio Gold as part of the transaction.
Rye Patch’s financial advisor is Capital West Partners, its legal advisors are Koffman Kalef LLP in Canada and Dorsey & Whitney LLP in the United States.
Shareholders and other interested parties are advised to read the materials relating to the transaction that will be filed with securities regulatory authorities in Canada and with the United States Securities and Exchange Commission when they become available because they will contain important information. Anyone may obtain copies of these documents when available free of charge at the Canadian Securities Administrators’ website at www.sedar.com and from the United States Securities and Exchange Commission at its website at www.sec.gov. This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell the Shares or a solicitation of a proxy.
Conference Call and Webcast
Alio Gold will host a conference call and webcast today at [11:00] am EDT for members of the investment community to discuss the transaction. Management from both Alio Gold and Rye Patch will participate in the conference call. Participants may join the conference call using the following call-in details:
Toll Free (US and Canada): (855) 427-9509
Toll Free (Outside North America): (210) 229-8822
Conference ID: 5577778
Webcast: https://edge.media-server.com/m6/p/w7s3y7at
Replay: To be available at www.aliogold.com
Annual Documents
Alio Gold would also like to notify shareholders in accordance with the requirements of the NYSE American, that the Company’s audited financial statements for the years ended December 31, 2017 and 2016 are available on the Company’s website at www.aliogold.com. Shareholders may also request a hard copy of the
complete audited financial statements free of charge at info@aliogold.com. The Company’s annual report on Form 40-F has been filed with the Securities and Exchange Commission and is available at www.sec.gov and also at www.aliogold.com.
About Alio Gold
Alio Gold is a growth oriented gold mining company, focused on exploration, development and production in Mexico. Its principal assets include its 100%-owned and operating San Francisco Mine in Sonora, Mexico and its 100%-owned development stage Ana Paula Project in Guerrero, Mexico. Located within the highly prospective Guerrero Gold Belt on 56,000 hectares of underexplored land, the Ana Paula Project is a high-grade, high margin project currently in the definitive feasibility stage. An underground decline to provide access for an exploration drill program has been initiated. The drill program will target the continuation of the high-grade gold mineralization below the proposed pit which has the potential to significantly enhance the robust economics of the project. The Company also has a portfolio of other exploration properties, all of which are located in Mexico.
About Rye Patch Gold
Rye Patch’s assets are all located in Nevada, USA and include its 100%-owned Florida Canyon Mine. The mine is a past producing, open pit, heap leach operation that was recently restarted and achieved commercial production in December 2017. Rye Patch also controls a sizeable 18,000 hectare land package along the Oreana Trend in Nevada with a 100% interest in Lincoln Hill, a PEA stage, open pit gold-silver project and a 100% interest in Wilco, a gold silver project with an NI 43-101 resource. Rye Patch also holds the Gold Ridge and Garden Gate Pass exploration properties.
Footnotes:
Gold production estimate for 2018 is based on analyst consensus
Production estimate for the Ana Paula project from the technical report entitled “NI 43-101 Preliminary Feasibility Study, Guerrero, Mexico”, dated May 16, 2017 which is available on Alio Gold’s SEDAR profile at sedar.com.
Cash balance and debt outstanding as of December 31, 2017 and adjusted for subsequent events
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities laws. These forward-looking statements or information relate to, among other things: anticipated benefits of the Arrangement to Alio Gold, Rye Patch and their respective shareholders; the timing and receipt of required shareholder, court, stock exchange, creditor and regulatory approvals for the Arrangement; the ability of Alio Gold and Rye Patch to satisfy the other conditions to, and to complete, the Arrangement; the anticipated timing of the mailing of the information circulars regarding the Arrangement, the closing of the Arrangement; future growth potential for Alio Gold, Rye Patch and their respective businesses; future mine development plans at the Ana Paula Project; estimates regarding production at the San Francisco and Florida Canyon Mines; and estimates of production costs and the possible revaluation potential.
In respect of the forward-looking statements and information concerning the anticipated completion of the proposed Arrangement and the anticipated timing for completion of the Arrangement, the parties have provided them in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials, including the required joint management information circular; the ability of the parties to receive, in a timely manner, the necessary shareholder, court, stock exchange, creditor and regulatory approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. These dates may change for a number of reasons, including unforeseen delays in preparing meeting material; inability to secure necessary shareholder, court, stock exchange, creditor and regulatory approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Arrangement. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times.
Forward-looking information relating to future production, analyst coverage, liquidity, cash flow and potential revaluation of Alio Gold shares, future growth potential for Alio Gold, Rye Patch and their respective businesses, future mine development plans, estimates regarding the recovery of minerals, and estimates of production costs is based on management of the applicable parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold, and other metals; costs of development and production; estimated production rates for gold and other metals produced by the parties; the estimated costs of development of development projects; Alio Gold and/or Rye Patch’s ability to operate in a safe and effective manner and their ability to obtain financing on reasonable terms.
These statements reflect the parties’ respective current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: satisfaction or waiver of all applicable conditions to closing of the Arrangement including, without limitation, receipt of all necessary shareholder, court, stock exchange, creditor and regulatory approvals or consents and lack of material changes with respect to Alio Gold and Rye Patch and their respective businesses, all as more particularly set forth in the Arrangement Agreement; the synergies expected from the Arrangement not being realized; business integration risks; fluctuations in general macro-economic conditions; fluctuations in securities markets and the market price of Alio Gold’s shares; fluctuations in the spot and forward price of gold and other metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar, Mexican peso and the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada, the United States or Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the parties do business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, including those currently enacted in the United States and Mexico; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; title to properties; and the factors identified under the caption “Risk Factors” in Alio Gold’s Annual Information Form, and under the caption “Risk Factors” in Rye Patch’s Annual Information Form. In addition, the failure of a party to comply with the terms of the Arrangement Agreement may result in that party being required to pay a termination fee to the other party, the result of which could have a material adverse effect on the paying party’s financial position and results of operations and its ability to fund growth prospects and current operations.
Ticker changed back to RPMGF! 02/08/18!!!
ACTION TYPE EFFECTIVE DATE SYMBOL DESCRIPTION
Symbol Change 02/08/2018 RPMGF Symbol change from RPMGD to RPMGF
https://www.otcmarkets.com/stock/RPMGF/security
$0.37 X 6.5 = $2.405
Hostile!~
RPMGD is a producing gold mine with a good chunk of change to ramp things up. If gold continues it's upward direction in the next few years, I'd say $2 to $2.50 is a conservative estimate.
Trading halted. I hope it's for a profitable reason but I'm not getting my hopes up, they've done this before with a market yawn.
The symbol for Rye Patch is currently RPMGD while it's adjusting for it's 6.5 reverse split.
RPMGF one for 6.5 reverse split. Closing PPS .1657:
http://otce.finra.org/DLSymbolNameChanges
Gotta link?
Press Release: Rye Patch Gold Completes 2017 Principal Repayments on its Credit Facility
BY Dow Jones & Company, Inc.
— 8:50 AM ET 01/03/2018
Rye Patch Gold Completes 2017 Principal Repayments on its Credit Facility
Canada NewsWire
VANCOUVER, Jan. 3, 2018
VANCOUVER, Jan. 3, 2018 /CNW/ - Rye Patch Gold Corp. ( RPMGF
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) (the "Company" or "Rye Patch") reports that in December, 2017, the Company completed its US$4.0 million principal repayment and paid US$609,000 in interest pursuant to its credit agreement with Macquarie Bank Limited. An aggregate of US$5.1 million in principal repayments was made in 2017, reducing the outstanding principal balance to US$21.8 million. The credit facility was used in the construction and re-start of the Company's flagship Florida Canyon mine in Pershing County, Nevada.
"Now that the Florida Canyon Mine is up and running, our priority is the reduction of this debt. With approximately 20% of the outstanding balance already repaid in 2017, and with repayments scheduled for 2018, the majority of the credit facility is forecast to be repaid by year's end," commented William C. Howald, the Company's President and CEO.
About Rye Patch Gold Corp. ( RPMGF
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)
Rye Patch Gold Corp. ( RPMGF
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) 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. ( RPMGF
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) now controls a trend--scale platform with mining operations, resource projects and exploration upside.
The combination of operations and organic growth 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.
Thank you for support and information, the presentation is realy very nice and interesting for study and read. Thanks
3 years after taxes. Scroll down to Florida Canyon PEA summery.
http://ryepatchgold.com/wp-content/uploads/2017/10/RyePatchGoldCorpPresentationOct17.pdf
I would like to know what is the period in years of invested capital return ?
$4.9 million put back in pocket today! Nice Treat!
Before any dividends I would think the company would have to generate some earnings first.
Does the company plan to pay dividends at the end of the year?
Earnings should be out soon!
Thanks. I thought you lived in Northern Nevada (see your moniker) so that was helpful.
Any thoughts on HYCTW? They're a Nevada miner or at least WERE.
I heard they were located in northern Nevada and were surrounded with gold bearing.
Latest Update
RYE PATCH REPORTS MONTHLY GOLD PRODUCTION
Florida Canyon Mine On-Track for Q3
Vancouver, British Columbia, July 10, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) reports June and second quarter production results for the Florida Canyon mining operation.
Gold production began from the new South Heap Leach Pad of the Florida Canyon Mine in April 2017. The new pad has completed its first full cycle of leaching of 45 days. Secondary leaching and new placement of ore is continuing on the Phase 1A portion of the pad. Since April, a total of 12,678 ounces of gold and silver dore have been poured. The dore is comprised of 7,075 ounces of gold and 5,603 ounces of silver.
William Howald, Rye Patch President and CEO, said, “We continue to successfully ramp-up mine operations, and the team is pleased with progress through the end of the second quarter. Gold production in the second quarter exceeded the ramp-up plan by more than 1,500 ounces of gold and the mine is on track for third quarter 2017 commercial production.”
Welsh-Hagen Associates of Reno, Nevada completed an audit of the leach pad, and compared its operational performance to the expected leach recovery model. Based on the audit, the new leach pad is performing in line with the leach curve model and recovered gold ounces are within 1 percent of the projected gold production. Production of 5,567 ounces of gold was projected for the first three months of leaching compared to 7,075 ounces of gold actually achieved between April 12 and June 30. The better-than-expected gold production results from more tons being placed on the leach pad between January and March.
June gold production was above plan but below expectations as a result of the acid wash circuit being off-line most of June to replace a cracked wash vessel. The new vessel has arrived and is being installed. Work on the regeneration kiln was also completed in June. The result of these two items being off-line was a decrease in efficiency of the carbon plant to attract the gold thus decreasing gold production. Both circuits will be back on-line in July.
Mining achieved 85 percent of its budgeted ore tons in the second quarter with the bulk of the ore coming from the Jasperoid pit. In June, a total of 693,434 tons (633,395 tonnes) of ore was mined compared to 575,477 tons (523,160 tonnes) budgeted. The increase in ore tonnage resulted from the Jasperoid pit being ore bound on the 5440 and 5420 benches. This has allowed for the mining fleet to begin accessing the second pit. Starting in July, the mine will have two sources of ore – Central and Jasperoid pits.
Fleet availability has improved dramatically over the second quarter. At the end of June, all 11 785 CAT haul trucks were operational. Two haul trucks were down for most of June as a result of major required component replacement. All other haulage and loading equipment was down for routine preventive maintenance. Loaders had a 94 percent availability and 785 haul trucks improved to 79 percent availability. An increase in 785-haul truck availability is expected to continue going forward.
The crusher continues to outperform its design specifications. Under the current plan, the crusher is required to crush 1,100 tons (1,000 tonnes) per hour. It is currently exceeding this limit and is permitted to crush up to 1,600 (1455 tonnes) tons per hour. Additional 785 haul trucks are being sourced and an increase to the crusher air quality permit is being prepared. The resulting increase in crusher capacity and through put could have a substantial positive impact on future annual gold production.
With the end of the second quarter, Rye Patch will release production results, activities and cost information for the Florida Canyon mine in the future on a quarterly basis in-line with the Company’s financial reporting.
I'm looking for some kind of good news next Q.
Hopefully these guys are the miners I think they are.
Yeah, I didn't get too exited, I've seen other stocks get halted and no rhyme or reason for it.
Looks like it amounted to nothing.
Trading halted. In all the years I've been with Rye Patch I've never seen that. Let's hope it's very positive news.
I'd say more good news, almost 4 mil in gold for May.
3,094 ounces at an average price of $1,275
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/360-tsx-venture/rpm/33003-rye-patch-gold-reports-may-2017-production-results.html
Good news,5.3 mil., no dilution.
RYE PATCH GOLD ANNOUNCES CLOSING OF SALE OF ROCHESTER ROYALTY AND FINAL ROYALTY PAYMENT
Vancouver, British Columbia, June 1, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce completion of the sale to Coeur Rochester, Inc. of the Company’s 3.4% net smelter return royalty (the “Royalty”) for total consideration of US$5,000,000 in cash.
In connection with the sale of the Royalty, the Company also received a final Royalty payment in the amount of US$313,701.86, representing the final Royalty amounts accruing up to the closing date.
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.
Sure is a heck of a lot better then selling 5 million dollars worth of shares!
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.
Vancouver, British Columbia, May 1, 2017 - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announced that it has completed the first gold pour from the new leach pad at the refurbished Florida Canyon Mine in Northwestern Nevada.
A total 485 ounces of gold was poured as doré in the month of April from the new South Heap Leach Pad with the first pour occurring on April 25, 2017. In addition, residual leaching from the old Florida Canyon and Standard Gold mines produced 602 ounces.
“This is a significant milestone for Rye Patch Gold,” said President and CEO William Howald. “The Florida Canyon team has done a phenomenal job on the re-start of the Mine and we are excited to be Nevada’s newest gold producer. We can now turn our sights to realizing the tremendous potential of our other projects along the Oreana Trend and reaching our goal of becoming Nevada’s next mid-tier producer.”
Rye Patch began irrigation of the newly built South Heap Leach Pad in mid-April 2017 only nine months after acquiring the Florida Canyon mine in July 2016. The Company plans to ramp up towards commercial production during the second quarter of 2017.
Another hurdle out of the way. Since our C.E.O.is a geologist and worked for Placer Dome for many years, there's a pretty good chance the team will find enough gold to make us all very happy.
Vancouver, British Columbia, March 30, 2017 - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) reports it has received approval from the Bureau of Mining Regulation and Reclamation to start irrigation on the new South Heap Leach Pad (“South Pad”). In spite of the severe winter weather this year, the Florida Canyon mine re-start has been successfully completed.
Mining, crushing and loading of the South Pad are ramping up and are nearing 70% of the forecast production rate coming into the end of the first quarter. Optimizing and maximizing performance of the mine will take place over the second quarter with commercial production anticipated by mid-2017.
“It’s with a great sense of accomplishment and pride that the Florida Canyon team has completed the re-start of the mine,” said President and CEO William Howald. “This accomplishment launches Rye Patch as a tenacious gold producer with a bright future with its pipeline of existing resource assets and exploration upside along the Oreana trend.”
The final Nevada Department of Wildlife (“NDOW”) site inspection has been scheduled. The first gold pour from the South Pad is projected in April 2017.
Awesome. Thank you. Nice candle today on both gold
and silver. Might just be ready for the next leg up?
Update to the website may help!
http://ryepatchgold.com/
It will be here when issued!
http://ndep.nv.gov/admin/public.htm#mining
Very nice. I'm really surprised that they aren't getting more
Attention from the investment community. Thanks for posting the
the article.
Great article about Rye Patch.
Rye Patch on verge of becoming Nevada’s next gold producer
Rye Patch Gold's Florida Canyon mine, 210 km northeast of Reno, Nevada. Credit: Rye Patch Gold.Rye Patch Gold's Florida Canyon mine, 210 km northeast of Reno, Nevada. Credit: Rye Patch Gold.
Posted By: Trish Saywell February 13, 2017
7
Since co-founding Rye Patch Gold (TSXV: RPM; US: OTC: RPMGF) a little over a decade ago, William Howald has folded seven projects into the junior’s asset portfolio and become a significant explorer on the Oreana Gold Trend in west-central Nevada near the town of Lovelock, as well as along the renowned Cortez Gold Trend in the north-central part of the state.
Along the way, the geologist has expanded the junior’s gold footprint from about 150,000 inferred ounces of gold-equivalent in 2006 to 2.4 million ounces in the measured and indicated category and a further 1 million ounces in the inferred.
“I’m really proud of Rye Patch,” says Howald, who cut his teeth running Placer Dome’s exploration programs in the United States (primarily Nevada) and Latin America, before the company was swallowed up at the end of 2005 by Barrick Gold (TSX: ABX; NYSE: ABX). “We’ve been around for ten years, and we’ve been keeping our eye on properties we like, and if people drop their claims and there’s an opportunity to pick them up, we do.”
The company’s Florida Canyon project is just one example of how the junior’s management team is able to take its knowledge of Nevada and parlay it into something that creates shareholder value.
Rye Patch bought the Florida Canyon mine on the first of August last year, and after a US$27 million build-out, which involved refurbishing the mining fleet, moving the crusher and building a new leach pad, the asset is on track to pour its first gold before the end of March.
“We’re mining at pretty much full capacity now,” Howald says. “We’ve got all of our trucks and loaders up and running and delivering to the crusher, and we’re running at 1,000 tonnes per hour or 24,000 tonnes a day. We can go higher than that. We’re waiting for one more permit that will get us up to 1,600 tonnes per hour.”
In the meantime, the company has loaded more than 300,000 tonnes onto the new leach pad and is waiting for state approval to start spraying it with cyanide, the last step before running the material through the company’s carbon plant and making gold.
“We’re two-to-three weeks away from getting state approval, but as we wait for those approvals, we can continue to load the pad with material,” he says. “We’re there. We bought the mine in August, started the project in September and now we are getting ready to pour gold. It’s really exciting.”
The permitted mine, 210 km northeast of Reno and about half way between Lovelock and Winnemucca, produced about 2.29 million ounces of gold over three decades starting in 1986.
Rye Patch bought Florida Canyon out of receivership from a Japanese bank for US$15 million in cash and 20 million shares.
During the ten years immediately prior to Rye Patch purchasing the mine, Florida Canyon was owned by Jipangu, a Japanese conglomerate that at the time had no other mining assets.
Jipangu had received permits to expand the heap-leach operation at the end of 2014 and had received a loan to do so. But instead of using the money for the mine, Jipangu used it for a different project in Japan, breaching the loan’s covenant.
Howald estimates that without even pouring an ounce of gold, Florida Canyon was worth about US$35 million when Rye Patch acquired the project. But the mine and surrounding property was even more valuable than that, given its synergies with Rye Patch’s other gold projects in the area.
The company’s Lincoln Hill, Wilco and Gold Ridge properties are within a 30 km radius south of Florida Canyon and can benefit from the mine’s facilities — including its carbon stripping plant, refinery and assay labs — to keep costs down.
The junior acquired 100% of Lincoln Hill, a bulk-tonnage deposit with additional high-grade underground and surface targets in 2007. It was acquired based on its geological setting and strategic location near recent gold discoveries at the company’s Wilco property, about 10 km to the west.
“In the 2014 Lincoln Hill PEA, capex was about US$40 million, so having those facilities nearby at Florida Canyon will have a very significant impact on capital expenditure at Lincoln Hill,” Howald says of the oxide heap leach project, 20 km to the south of Florida Canyon and about 160 km northeast of Reno.
Howald sees similar cost savings at Rye Patch’s 100%-owned Wilco project, a bulk-tonnage project with near-surface resources.
“Having the operating platform of Florida Canyon makes putting those projects into production a lot easier because we won’t have to raise money. We will be able to finance them through revenue from the mine.”
At Wilco, the company has a resource of about 1.4 million ounces of gold-equivalent in the measured and indicated category, and another 600,000 ounces in the inferred category, and the geology is similar to Florida Canyon’s.
“It’s basically in the same rocks. We’ll process ore on site at Wilco, but we will be able to benefit from shared management and facilities,” Howald says. “We would build a leach pad and carbon plant, process it on site, then truck the active carbon to Florida Canyon to strip and process.”
Capacity won’t be a problem. According to Howald, the Florida Canyon refinery has a capacity of 180,000 ounces of gold per year, and the company’s initial plans for Florida Canyon are to produce an average of 75,000 ounces of gold a year. “We have plenty of capacity to take on Lincoln Hill and Wilco,” he says. “We could handle that extra carbon.”
Rye Patch has already started the environmental assessment process for both projects. Lincoln Hill is further along in the process because infill drilling and metallurgical work have been completed over the last few years. Wilco is slightly further behind, as metallurgical studies and infill drilling have yet to commence.
Howald notes that at Lincoln Hill, the company is well along in the EA permitting process. “We’re close to the end, so that permit is just pending,” he says. “We should have it by the second half of this year.”
“The EA permit allows us up to 25 sq km of disturbance, which will include bulk metallurgical sampling, infill drilling and weather station finalization, then we will work towards our permits for mining,” he adds.
At Lincoln Hill, the PEA envisioned an open-pit operation that would have a mine life of five years and annual production of about 33,000 ounces of gold and 753,000 ounces of silver. “At current gold and silver prices it’s a very robust project, and those current prices are pretty close to those in the PEA,” Howald says.
“In the second half of 2017 we’ll do additional infill drilling at Lincoln Hill and then start the mine-permiting process, and we’re on track to get there in 2019,” he says. “We plan to initiate metallurgical work and infill drilling at Wilco in 2018. It’s a more distant start-up, sometime in 2020 or 2021.”
Combining the resources of Florida Canyon, Lincoln Hill and Wilco brings the projects’ total measured and indicated resource to 227.65 million tonnes grading 0.37 gram gold per tonne, 4.91 grams silver per tonne — or a gold-equivalent grade of 0.47 gram gold per tonne — for 2.76 million oz. contained gold and 20.55 million ounces of silver, or 3.18 million ounces of gold equivalent.
Inferred resources add 80.88 million tonnes grading 0.45 gram gold, 6.65 grams silver — or a gold-equivalent grade of 0.59 gram gold — for 1.19 million oz. contained gold, 14.26 million oz. silver, or 1.47 million ounces of gold-equivalent.
In addition to those projects, Rye Patch owns a number of others, including 100% of Gold Ridge, adjacent to Lincoln Hill. Gold Ridge’s main zone is 2 km west of Lincoln Hill and has the potential to add significant ounces to that project.
It also owns 100% of the X Claims in Nevada’s Pershing County, near Coeur Mining’s (NYSE: CDE) Rochester mine. (Rye Patch has a 3.4% net smelter return royalty on the mine.)
The X Claims are strategically sandwiched between the Rochester mine to the north and Pershing Gold’s (TSX: PGLC; NASDAQ: PGLC) Relief Canyon mine to the south, along a structure called the Black Ridge Fault. Rye Patch has done some initial mapping and sampling and has had encouraging results at the X Claims project, Howald says.
Rye Patch’s 100%-owned South Coal Canyon property is an early stage exploration project that is an extension of the structural zone south from Wilco along the Oreana Trend. The main target is an outcropping breccia pipe that Rye Patch believes is similar to the Spring Valley gold deposit, previously owned by Barrick but sold to a Waterton subsidiary in 2015. “We have commenced mapping and sampling with encouraging results” he says, “with additional work planned for 2018-2019.”
The company’s 100%-owned Gold Ridge project adjoins Lincoln Hill and has targets for both bulk-tonnage and high-grade underground mineralization, while the Panther Canyon project, located on a structural zone between Wilco and Florida Canyon with the same kind of geology, was acquired last year.
Finally, the company owns 100% of Garden Gate Pass, an early stage project in Nevada’s Eureka County, about 65 km southeast of Battle Mountain and surrounded by major gold deposits including Barrick’s Cortez Hills mine 12 km to the north-northwest and Barrick’s nearby Goldrush discovery 2 km to the north.
“Garden Gate Pass is a hole in Barrick’s land position, so we’re surrounded on three sides by Barrick and are located immediately south of their Goldrush discovery,” he says. “Every day, Barrick’s geologists and equipment drive across our property to get to Goldrush, so it definitely has strategic value for Barrick, and we hope the extension of that Goldrush mineralization comes onto our ground.”
Howald notes that Garden Gate Pass is in the same geological environment and in the same rocks. “We’ve seen gold values of up to 3 grams gold per tonne in drill holes, so it’s intriguing,” he says, adding that the company has drilled twelve holes (four core and eight reverse circulation). “I think the Cortez Trend is going to end up in the same magnitude of numbers as the Carlin Trend as more exploration is done there.”
As for Florida Canyon, Howald is confident the property offers potential for further exploration.
“We’ve had our geologists mapping and sampling around the pit, and based on the results of these efforts, we believe there’s quite a bit of upside immediately adjacent to the deposit. I think we’ll add significant ounces when we commence infill drilling.”
Underneath the oxide there’s a sulphide body, and it’s been tested by a few deeper drill holes from past operators, he adds.
“It has some significant grades — we’ve seen gold values of up to 12 to 15 grams in those historic drill holes, and we’ve noted that in the mid-1990s, the previous owner, Pegasus, had completed extensive metallurgical work on the sulphides that looks quite promising, so after we mine the overlaying oxide ore, we can do something with the sulphide.”
Over the last year, Rye Patch Gold’s shares have traded within a 52-week range of 14¢ (February 2016) and 47¢ (July 2016) and at press time were trading at 32¢.
The junior has about 387 million shares, fully diluted, and Howald owns a little over 5 million shares and options.
Says Howald: “I’m a big shareholder, and I have the same hopes and wishes as other shareholders in the present and future successes of Rye Patch Gold.”
Michael Gray of Macquarie Research has an outperform rating on the company and a price target of 65¢ per share.
“Rye Patch remains a top pick among developers on an anticipated re-rate as they enter into production in the first half of 2017,” the analyst wrote in a research note.
Coeur Rochester is obligated to pay a 3.4% NSR royalty on up to 39.4 million silver equivalent ounces produced and sold from a portion of the Rochester mine (including stockpile ore, mineral processing facilities and mining claims located in the Sections set forth in the NSR royalty agreement) commencing January 1, 2014. For each calendar quarter, the royalty is payable on the actual sales prices received at the time of sale (exclusive of gains or losses associated with trading activities), less refining costs, of gold and silver produced and sold from the Rochester mine. At December 31, 2016, 18.0 million silver equivalent ounces remain subject to the 3.4% NSR royalty.
http://investors.coeur.com/Cache/c37967184.html
So about 45% Remains.
The potential here seems to be amazing.
Rye Patch Delivers Gold Into Hedge
Florida Canyon Mine Development Continues On Track
Vancouver, British Columbia, February 9, 2017 - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announces that it has delivered 3,409 ounces of gold into its hedged position at an average price of US$1,275.13 and sold 4,804 ounces of silver at US$17.51 for gross revenue of US$4,431,662 produced from existing leach pads at the Standard and Florida Canyon mines.
The Company also received US$1.2 million from its Rochester mine NSR royalty for Q4 2016 in mid-January. The next payment will be for Q1 2017 and is expected in mid-April 2017.
Rye Patch’s subsidiary, Florida Canyon Mining, continues to produce and sell gold from the existing leach pads at the Standard and Florida Canyon mines, with the revenue from the gold sales and NSR royalty contributing to Florida Canyon re-start costs.
Mining, crushing and ore placement are continuing at the new South Heap Leach facility. The projected ramp-up to 600,000 tons per month production (545,000 tonnes per month) is on schedule. Irrigation followed by gold production is pending approval from the Nevada regulatory agency.
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Our Goal: Significant Resource Milestone
Rye Patch has acquired advanced assets and explored aggressively towards its goal to build a sizable gold and silver resource. The company's Nevada focus arose from management's considerable knowledge of the region and Nevada's key position in world gold output. The state currently produces 78% of U.S. gold and 8% worldwide.
Management: International Senior-Level Experience
Rye Patch management, with extensive major and mid-tier experience worldwide, brings an unusual level of technical, financial and executive skills to a junior company. This outstanding group has developed and operated major mines and managed large exploration budgets on five continents.
Increasing Gold Inventory
The Company intends to sustain this rapid growth through exploration on its existing project portfolio and through acquisitions along some of Nevada's major gold trends.
Timing Right for New Acquisitions
Management is seeking new acquisitions in Nevada, and the timing is excellent. As market conditions decline, attractive projects are coming available on very favorable terms to make Rye Patch well positioned to capitalize on new opportunities in this rapidly-changing market.
Website: http://www.ryepatchgold.com
Phone: 604-638-1588
Email: info@ryepatchgold.com
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