News Bulletin

Rye Patch Gold Corp will acquire majority stake in Nevada Gold Project

Thursday, 26 Nov 2009

TSXV Listed group, Rye Patch Gold Corp has announced their intention to acquire Centerra Gold’s 64% interest in the Ren Gold Property on the Carlin Trend in Nevada. Rye Patch will pay US$42M over three years in cash and scrip which equates to an acquisition cost of approx $40 per attributable ounce of gold.

The Ren Project currently boasts resources of 1.6M ounces Au, with an average grade of 13.6 grams per tonne which has been prepared in accordance with 43-101 guidelines. The Project is located nearby Barrick Gold’s Goldstrike property and consists of 7.4 sq km of the Northern Carlin Trend. Following the successful acquisition from Centerra Gold, Rye Patch will have almost 4.3Moz of gold in its global resource inventory which is focussed solely on mineral exploration in the state of Nevada, USA.

Total consideration will take the form of US$2M upfront with deffered payment of US$10M and US$30M in 2 and 3 years respectively. Both deferred payments must consist of a minimum 50% cash with the balance being made up with Rye Patch shares.

Source: Rye Patch Gold Public Announcement - November 2009

     

     

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