VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/26/12 -- Rye Patch Gold Corp (TSX VENTURE: RPM)(OTCQX: RPMGF)(FRANKFURT: 5TN) (the "Company") reports on the legal dispute between the Company and its wholly-owned Nevada subsidiary Rye Patch Gold US Inc. against Coeur Rochester, Inc. ("CRI") a wholly-owned subsidiary of Idaho's Coeur d'Alene Mines Corporation. In order to complete the trial, a two-week time frame is estimated. The District Court's calendar shows the earliest available consecutive two-week period starts on September 16, 2013; however, Rye Patch Gold US Inc.'s legal counsel will confer with the court to seek an earlier trial date.
Rye Patch Gold US Inc. is awaiting the outcome of several pending motions before the Sixth District Court including its motion for preliminary injunction, and a motion for partial summary judgment. In addition, 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.
Last fall, Rye Patch Gold US Inc. located unpatented lode mining claims on open federally owned public lands of the United States of America. The federal lands became open for the staking of unpatented lode mining claims on September 1, 2011, because CRI did not pay the time-sensitive, mandatory unpatented claim maintenance fee. The result of CRI's failure was, its 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.
CRI received documentation from the United States Bureau of Land Management issuing its letter officially declaring CRI's former 541 unpatented lode mining claims forfeited and void as a matter of law. CRI's parent corporation, Coeur d'Alene Mines Corporation (NYSE: CDE), in its 10-K reported that CRI failed to pay the mandatory claim maintenance fees causing their mining claims - the former 541 unpatented lode mining claims - to be void.
Since the federal lands were open to mineral location by all United States citizens, including Rye Patch Gold US Inc., for 56 days, 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. In 2012, an additional 11 unpatented lode mining claims were staked on open lands bringing Rye Patch Gold US Inc.'s total number of unpatented lode mining claims to 413 for the Rochester project.
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.