VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/16/12 -- Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF)(FRANKFURT: 5TN) (the "Company") announces recent events in the lawsuit among the Company and its wholly-owned subsidiary Rye Patch Gold US Inc. against Coeur Rochester, Inc. ("CRI").
CRI requested the Nevada Sixth District Court grant a postponement of the trial scheduled for November 2012. CRI states the lawsuit is complex, and CRI is unable to complete its review, assessment, and preparation of the voluminous amount of information Rye Patch Gold US Inc. has exchanged regarding the LH and OG unpatented lode claims. The Nevada Sixth District Court has granted CRI request for continuance (postponement) of the trial. A new court date is pending at this time; however, the Nevada Sixth District Court will schedule a new trial date within 10 calendar days. Once the new trial date is known, the Company will disseminate the information.
William C. Howald, President and CEO of the Company and President of Rye Patch Gold US Inc., stated: "Rye Patch Gold believes it has a very strong case, and we are anxious to go to trial and prove the validity and seniority of the LH Claims. Management is confident in the validity of our LH Claims, and we are anxious to advance the entire Rochester property."
In a related action, Rye Patch Gold US Inc. petitioned the Nevada Supreme Court for a writ of mandamus to revoke the appointment of the special master. Rye Patch Gold US Inc. asserts the appointment of the special master is not authorized under the Nevada Rules for Civil Procedure. The Nevada Supreme Court has issued a stay of the order appointing the special master and has directed CRI to respond to the petition within 30 days.
The lawsuit involves ownership of unpatented lode mining claims that Rye Patch Gold US Inc. located in the fall of 2011 on federally owned public lands of the United States of America. The federal lands became open for the location of unpatented lode mining claims on September 1, 2011 because CRI failed to pay the mandatory annual mining claim maintenance fees required under the laws enacted by the Congress of the United States of America. As a result, CRI's former 541 unpatented lode mining claims were forfeited and void as a matter of law, and the public lands became open for the location of unpatented lode mining claims by United States citizens.
In 2012, the United States Bureau of Land Management issued its decision officially declaring CRI's 541 unpatented lode mining claims forfeited and void as a matter of law. CRI's parent corporation Coeur d'Alene Mines Corporation reported in its 10-K that CRI failed to pay the mandatory claim maintenance fees causing their former 541 unpatented lode mining claims to be void.
The federal lands were open to mineral location by any United States citizens, including Rye Patch Gold US Inc., for 56 days before Rye Patch Gold US Inc. began staking the 402 LH unpatented lode mining claims on the open federal lands. The claim staking commenced on October 27, 2011, and all monumentation was completed by November 21, 2011. In late November 2011, Rye Patch Gold US Inc. contacted CRI to notify them the 402 LH unpatented lode mining claims had been staked. CRI's response was to overstake the senior 402 LH unpatented lode mining claims with a junior set of claims denoted as the N unpatented lode mining claims; hence the lawsuit.
Rye Patch Gold US Inc. controls over 100 square kilometres (40 sq. miles) along the Oreana trend. The Rochester Property - LH and OG Claims - cover over 30 square kilometres (7,500 acres) in 413 unpatented lode mining claims.
The Company is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. is developing gold and silver resources along the emerging Oreana trend, located in west-central Nevada, and is exploring 66 square kilometres along the Cortez trend near Barrick's two new gold discoveries. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about the Company, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds, the financial position of Rye Patch to pursue legal undertakings; the outcome of legal action relating to the Rochester property and the LH unpatented claims, the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. Litigation is inherently uncertain and factors that could cause actual results to differ materially from those in forward-looking statements include unexpected judicial findings of fact, previously unknown facts arising, and decisions which depart from past legal precedent and similar events.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Rye Patch Gold Corp.
(604) 638-1588
(604) 638-1589 (FAX)
info@ryepatchgold.com
www.ryepatchgold.com
