OTCQX:RPMGD - Post by User
Comment by
pipefit2on Aug 07, 2013 10:26am
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Post# 21653870
RE:RE:RE:GOOFY
RE:RE:RE:GOOFYHardpan--Rye Patch currently owns all of Wilco. Newmont has the RIGHT to back in and acquire 70%, by spending $20 million. The money would be used to drill infill cores and other activities that would push the project toward a production decision. In this scenario, Rye Patch would not spend any money.
Rye Patch has spent all they are required to spend to hold the lease. However, in order to force Newmont to make a decision to back in. or not to back in, they have to produce some sort of document, like a pre-prefeasability study. I believe the open pit mine plan for
wilco they published a year or two ago is part of that study.
But they still haven't forced Newmont's hand by presenting Newmont with the required document. So my idea would be to offer to Newmont some sort of intermediate step. Spend $10 million, with Newmont putting up 70% of the cash, and Rye Patch 30%, and prove up, or try to prove up, enough additional ounces to make the project a 'go'. Then, if it's a 'go', Newmont would spend another $20 million. Total spent in this scheme, $30 million, of which $3 million would be Rye Patch's share.