Rye Patch Gold Corp. Completes Work Commitment for Wilco Earn In

• Published in: Marketwire
• Format: Trade Publication Article
• Language: English
• Published: Toronto Intrado Digital Media Canada Inc 04.03.2010

Rye Patch Gold's interest in the Wilco project is subject to the back-in rights of a subsidiary of Newmont Mining Corporation ("Newmont"). If Rye Patch Gold completes a positive feasibility study on the Wilco project, Newmont will then have 120 days to exercise its back-in right to earn a 60% interest in the Wilco project which, if exercised, requires Newmont to contribute expenditures totalling US$15 million on the project prior to the 8th anniversary of exercising the back-in right. Newmont may also earn an additional 10% interest in the project (for a total 70% interest) by expending an additional US$5 million (for a total of US$20 million) on the property. If Newmont declines to exercise its back-in rights, or fails to exercise such rights within the 120-day time period, or fails to complete the necessary expenditures, Rye Patch Gold may complete the acquisition of the Wilco project by making a one-time payment to Newmont of US$2 million in cash (or half in cash and the remainder in Rye Patch Gold common shares, at Rye Patch Gold's sole discretion), failing which the project reverts to Newmont. Thereafter, Newmont's sole interest in the Wilco project will be a sliding scale 2% to 5% net smelter returns royalty (NSR) in respect of all gold, silver and platinum group metals production, as determined based on the prevailing gold price, and a 3.5% NSR in respect of production from all other minerals.