Rye Patch Gold RPMGD

RE:Contingent consideration

[ts9222]

The web page describing the Florida Canyon acquisition doesn't say the greater of U.S.$0.20 which makes it sound like a dangerous "floorless convertible". But the AIF Annual Information Form which is more legally definitive than a web page which is not always accurate does state the floor.

" The Cash Contingent Consideration payable to ADM-Gold may be alternatively satisfied by the issuance of: (i) US$2.5 million worth of common shares of Rye Patch at a price per share equal to the greater of U.S.$0.20 and the volume weighted average trading price of the shares for the 20 trading days prior to the commencement of commercial production, and (ii) an unsecured debt obligation for US$2.5 million (subject to adjustment for outstanding liabilities) maturing five years after commencement of commercial production, subject to mandatory prepayment from certain levels of uncommitted free cash flow from the mine, and bearing 4% interest per annum in the first year and 9% interest per annum thereafter with interest to be paid quarterly in cash."

And the floor of CAD$0.26 is well above the current share price.