VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 29, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) ("Rye Patch" or the "Company") is pleased to report that investors of the December 2009 private placement have fully exercised their share purchase warrants, resulting in the issuance of 11,850,500 common shares of the Company at the exercise price of $0.35 per common share for proceeds of $4,147,675.
Rye Patch has approximately $7.3 million cash on hand, allowing the Company to continue drilling on the Rochester (LH Claims), Wilco, and Lincoln Hill projects along the Oreana trend, and to pursue Carlin-type gold deposits on the Patty and Garden Gate Pass projects on the Cortez gold trend in Nevada. Resource updates are planned for the Wilco and Lincoln Hill projects in March and June 2012, respectively. The Company will vigorously defend its title in respect of the LH Claims which, according to Coeur d'Alene Mines Corporation's December 5, 2011 news release, may contain up to 20% of Rochester's proven and probable mineral reserves and a significant portion of the Rochester and Packard resource. The Company is well funded to complete these objectives through the end of 2012.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada--the world's fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent grading 0.65 g/t Aueq in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent grading 0.62 g/t Aueq in the inferred category (see Rye Patch's news releases dated May 18, 2010, May 11, 2009, and June 2, 2009). Rye Patch Gold is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold is developing gold and silver assets along the emerging Oreana trend, located in west-central Nevada, and is exploring 66 square kilometres along the Cortez trend near Barrick's two new gold discoveries. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about Rye Patch Gold, 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 to pursue legal undertakings; the outcome of legal action relating to the Rochester property and the LH unpatented claims, the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, 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. Litigation is inherently uncertain and factors that could cause actual results to differ materially from those in forward-looking statements include unexpected judicial findings of fact, previously unknown facts arising, and decisions which depart from past legal precedent and similar events.
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.