August 06, 2013 09:00 ET
Rye Patch Quantifies 3.4% NSR Coeur Rochester Mine Royalty
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 6, 2013) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company" or "Rye Patch") describes its Coeur Rochester mine 3.4% net smelter return (NSR) royalty cash flow model so that investors can have a better understanding of its value and cash revenue stream to the Company over the next four years. The information is based on Coeur Mining, Inc.'s published National Instrument 43-101 technical report dated effective January 1, 2013 (the "Technical Report") in respect of the Coeur Rochester Mine located along the Oreana trend in Pershing County, Nevada.
Pursuant to the June 25, 2013 settlement between the Company and Coeur Rochester Inc. (Coeur Mining, Inc.'s wholly-owned subsidiary), the Company will receive a 3.4% NSR from all silver equivalent ounces produced and sold until 39.4 million ounces of silver equivalent ounces have been produced and sold from the Coeur Rochester mine;
Using Coeur Mining Inc.'s Technical Report, the royalty is projected to yield total cash disbursements of US$32 million to Rye Patch between January 1, 2014, and December 31, 2017;
The NSR will be paid quarterly, and the revenue stream is estimated to provide between US$6.79 million to US$8.56 million annually between January 1, 2014, and December 31, 2017; and
The NSR's actual annual cash revenue stream is dependent on the gold and silver price received from the sale of gold and silver during each quarter of the royalty.
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