pcNewsWire – Rye Patch Gold Corp. (TSX-V: RPM; OTCQX: RPMGF; FWB: 5TN) has closed previously announced prospectus offering of 38,470,000 common shares at $0.26 per share for gross proceeds of $10,002,200.
The offering was led by PI Financial Corp., and included Canaccord Genuity Corp. and Industrial Alliance Securities Inc., as underwriters.
The company intends to use the net proceeds of the Offering for continued expansion of the Florida Canyon Gold Mine, additional haulage equipment at the mine, resource development and exploration drilling at the mine, and working capital.
RYE PATCH GOLD CLOSES $10 MILLION BOUGHT DEAL OFFERING
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VANCOUVER, BC June 29, 2017 – Rye Patch Gold Corp. (“Rye Patch” or the “Company”) (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) is pleased to announce the completion of its prospectus offering announced on June 6, 2017 whereby the Company issued a total of 38,470,000 common shares of the Company (“Shares”) at a price of $0.26 per Share for gross proceeds of $10,002,200 (the “Offering”). Rye Patch has also granted the underwriters an over-allotment option to purchase up to an additional 5,770,500 Shares at $0.26 per Share, exercisable in whole or in part until 30 days after the date of closing of the Offering.
The Offering was led by PI Financial Corp., and included Canaccord Genuity Corp. and Industrial Alliance Securities Inc., as underwriters. The Company paid the underwriters a cash commission of 5% of the gross proceeds of the Offering. The Company also issued the underwriters compensation options exercisable for the purchase of a total of 769,400 Shares at $0.26 per Share until December 29, 2018.
The Company intends to use the net proceeds of the Offering for continued expansion of the Florida Canyon Gold Mine, additional haulage equipment at the mine, resource development and exploration drilling at the mine, and working capital.
The Offering is subject to final approval of the TSX Venture Exchange.
The securities issued or issuable in connection with the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Nevada focused, Tier 1, precious metal mining company engaged in the mining, development and exploration of a 180 square kilometre land package along the prospective Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the Florida Canyon Gold mining operation, Rye Patch now controls a trendscale platform with mining operations, resource projects and significant exploration potential.
The combination of mining and a growth profile along a major Nevada gold trend positions Rye Patch to become an emerging North American mid-tier precious metal producer. For more information, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors For additional information contact:
Rye Patch Gold Corp
Tel.: (604) 638-1588
Fax: (604) 638-1589