Rye Patch Gold (RPM.V) continues to benefit from the royalty deal with Coeur Mining (CDM.TO, CDE), after Coeur has entered into a settlement agreement with Rye Patch approximately two years ago. As you might remember, Rye Patch was able to stake the claims which contained the producing Rochester gold and silver mine as Coeur Mining had forgotten to pay the claim fees.
As part of the settlement whereby Coeur re-obtained the mining rights to the Rochester mine, the company promised to temporarily pay Rye Patch a 3.4% NSR on the silver-equivalent production at Rochester and this results in a very welcome quarterly cash inflow which basically covers all of Rye Patch’ overhead expenses as well as a large part of the exploration programs.
Go to Rye Patch’ website
The author holds a long position in Rye Patch Gold. Rye Patch is a sponsor of the website. Please read the disclaimer
