OTCQX:RPMGD - Post by User
Comment by
pipefit2on Jun 16, 2014 10:51am
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Post# 22663062
RE:RE:RE:Wilco
RE:RE:RE:WilcoMy guess is that they will drill Wilco after drilling Lincoln Hill, later this year, but only in limited fashion.
The problem with Wilco is that Rye Patch met their spending obligations there many years ago. They can hold that lease pretty much in perpetuity, if I'm not mistaken, without spending much, if anything. Therefore, if they spend a lot of additional money, and find a bunch of gold, Newmont can swoop in and claim 70% of the that gold. Newmont would have to spend $20 million on step out and infill drilling, and PEA type work in that case.
So you see, it would be a case of Rye Patch taking all the risk so that that someone else can get 70% of the gain, if successful. And if Rye Patch drills some more at Wilco and finds nothing? Newmont doesn't spend a dime.
This is why they need some sort of interim agreement with Newmont that balances out the risks a bit.