VANCOUVER, Aug. 11, 2015 /CNW/ - Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the "Company" or "Rye Patch") announces that Rye Patch Gold US Inc. ("RPG US"), a wholly owned subsidiary of the Company, has filed a demand for arbitration with Coeur Mining (NYSE:CDE) on the Q1 2014 Net Smelter Return royalty payment ("NSR") from the Rochester mine.
Rye Patch retained Price Waterhouse Coopers LLP to perform the audit of the 2014 royalty calculation and payments. Based on the audit, the arbitration calls into question Coeur's calculation of the Q1 2014 NSR royalty payment. Coeur collected revenue of US$9.2 million from gold and silver produced and sold in January 2014. Payment of the 3.4% NSR royalty, which was due to RPG US under its Royalty Agreement, was deficient in the amount of US$313,242.
"After trying to resolve the discrepancy internally with Coeur since April 2014, Rye Patch has no other alternative but to arbitrate for a final resolution," stated William C. Howald, President and CEO of the Company.
If successful, RPG US will seek relief for the attorney, arbitration, and audit costs plus interest. Erwin and Thompson LLP are representing Rye Patch Gold US Inc.
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.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
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.
SOURCE Rye Patch Gold
For further information: Rye Patch Gold Corp, [email protected], Tel.: (604) 638-1588, Fax: (604) 638-1589