Edited by Sean Mason
Rye Patch Gold (TSX: V.RPM, Stock Forum) has seen amazingly consistent insider buying since November.
Rye Patch Gold Corp. is a Nevada-focused gold and silver explorer/developer with a goal of having a 10-million ounce gold inventory within 36 months. Rye Patch's current resource inventory has 1,164,000 ounces of gold and gold equivalent in the measured and indicated category plus 2,177,315 ounces of gold and gold equivalent in the inferred category.
The largest of its acquisitions called ‘Ren’ was canceled literally at the last minute April 8, as the previous operator opted to match their offer (Homestake Mining Company of California exercised its pre-emptive right to acquire from Centerra Gold (U.S.) Inc. all of Centerra's participating interest in the Ren joint venture property. As a result, Rye Patch Gold is entitled to receive a break fee of US$250,000 from Centerra).Thus, public dissatisfaction is probably peaking now.
At its current stock price of 18.5 cents, the market is assigning little or no value to any of its other projects, which contain about two million ounces of low-grade gold and silver.
The company also announces the termination of Lindsay Malcolm, as Manager Corporate Development, effective immediately. Obviously, that firing of the Corp. Dev VP has added to the retail investor angst, and is probably sending RPM lower than it would otherwise.
We Vultures love bad, but non-lethal, investor-disgusting news, as it can represent opportunity. When there is Baby-out-with-bathwater-selling it can be fun to "stink bid." Note that the insiders have resumed their buying in size at this lower level.
Obviously and probably a risky bet at this stage, but not nearly as high risk as it was a month ago at 27.5 cents, or six months ago at 42 cents.
www.gotgoldreport.com
Disclosure: Gene Arensberg actively trades these and other stocks and also writes his Got Gold Report for Stockhouse. Gene currently holds shares and has a bid in for Rye Patch and actively trades the companies he researches for "Vulture Bargains."