RYE PATCH GOLD CORP. ("RPM")
BULLETIN TYPE: Property-Asset or Share Purchase Agreement, Shares for Bonuses
BULLETIN DATE: August 11, 2016
TSX Venture Tier 1 Company
Property-Asset or Share Purchase Agreement
TSX Venture Exchange Inc. (the "Exchange") has accepted for filing documentation pertaining to an agreement dated May 24, 2016 (the "Agreement"), among Rye Patch Gold Corp. (the "Company"), ADM-Gold Co., Ltd., Jipangu International Inc., and Imlay Mining Co., Ltd. Pursuant to the Agreement, the Company acquired the mineral properties and related assets comprising the Florida Canyon Gold Mine and Standard Gold Mine, Nevada, USA (the "Property").
Consideration for the Property is as follows:
CASH SHARES
Closing US$15,000,000 20,000,000
In addition, US$5,000,000 is due and payable as contingent consideration within sixty (60) days of commencement of commercial production at the Florida Canyon mine by the Company as operator. The US$5,000,000 contingent consideration may be payable in shares. The contingent consideration also includes 15,000,000 warrants of the Company. The warrants have an exercise price of US$0.50 for a period of two (2) years.
Insider / Pro Group Participation: N/A
For additional information please refer to the Company's news releases dated May 25, 2016 and July 29, 2016.
Bonus Warrants
The Exchange has accepted for filing the Company's issuance of 16,224,545 bonus warrants exercisable at a price of Cdn$0.22 per share until July 28, 2021 in connection with a credit facility in the amount of US$27,000,000 from Macquarie Bank Limited (the "Facility"). Amounts draw down under the Facility will bear interest at a rate of LIBOR plus 8% per annum and are due on September 30, 2020.
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