VANCOUVER, March 3, 2015 /CNW/ - Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the "Company" or "Rye Patch") is pleased to announce that its wholly owned subsidiary has purchased the surface and mineral estate on private lands adjacent to the Lincoln Hill resource project and surrounding exploration targets located in Pershing County, Nevada.
- Purchase of surface and mineral estate covering 1,654.75 acres (670 hectares);
- New acreage is located immediately west and southwest of the Lincoln Hill resource and northwest of the Silver Ridge exploration target; and
- The lands represent strategic locations for infrastructure and facilities associated with the Lincoln Hill gold/silver deposit and surrounding exploration targets.
Rye Patch Gold US Inc. has entered in to an agreement with New Nevada Resources LLC ("NNR") to purchase the surface and mineral estate on 1,654.75 acres of private land near the Company's Lincoln Hill project. The lands represent strategic areas for the location of infrastructure and facilities to develop the Lincoln Hill resource project, and its surround exploration projects.
William Howald, president and CEO stated, "These private lands complement our existing land package and give the Company complete flexibility in developing the Lincoln Hill resource into one of the next bulk-tonnage, heap-leach operations in Nevada. Their proximity to the Lincoln Hill resource as well as the nearby exploration targets allow for the development of a mining complex with several source areas feeding a centralized plant. As we work our way towards the feasibility of mine development, the final layout will be determined."
The Company paid a $500 per acre price for the surface and mineral estate with NNR retaining a net smelter return royalty ranging from 2.125% to 3.5% depending on the parcel. The definitive agreement has been signed and the transaction will close on or before March 31, 2015.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company lead by a seasoned management team that has participated in major discoveries totally 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