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.
