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Rye Patch Gold announces completion of Florida Canyon Property acquisition.

Big Al
July 29, 2016

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Discussion
18 Comments
    DFS
    Jul 29, 2016 29:18 PM

    What kind of dilution did RPM.V end up having?

    DFS
    Jul 29, 2016 29:28 PM

    Upon the signing of the Credit Agreement, Rye Patch issued to Macquarie Bank 16,224,545 warrants, each warrant being exercisable for one common share of the Company for a five‑year term from date of issue at an exercise price of Cdn$0.22 per common share. The warrants, and the common shares underlying the warrants, are subject to a four‑month hold period expiring November 29, 2016.
    And what kind of overhang does the above imply?

      Jul 29, 2016 29:49 PM

      yeah
      another 32,000,000 shares at $.22
      going to get dumped at anything above $.30
      Unless of course the mine is producing gold at a profit and the market believes the market cap is justified.
      We will see.

        DFS
        Jul 29, 2016 29:04 PM

        No, they won’t get dumped at .30, because the bank has a small putative basis.
        My guess is that the bank will exchange the warrants for shares at its leisure and sell only after some setback, due to a trailing stop.
        The reason I posted that paragraph of the announcement was I asked myself, “why did the whole announcement not get posted and why no fees discussed in commentary?”

        DFS
        Jul 29, 2016 29:07 PM

        No, they won’t get dumped at .30, because the bank has a small putative basis.
        My guess is that the bank will exchange the warrants for shares at its leisure and sell only after some setback, due to a trailing stop.
        The reason I posted that paragraph of the announcement was I asked myself, “why did the whole announcement not get posted and why no fees discussed in commentary?”
        The close today RPGMF WAS 0.31

          Jul 29, 2016 29:27 PM

          If I read correctly from the released below – it sure sounds like the outstanding shares will double.

          Immediately prior to the completion of the acquisition, the escrowed proceeds from the company’s $49.1-million private placement of subscription receipts completed in June, 2016, were released following satisfaction of the escrow release conditions. A portion of the net proceeds (after payment of agents’ commissions) was used to pay the purchase price under the acquisition and to discharge certain liabilities at the Florida Canyon gold mine. In addition, the subscription receipts were converted on a 1:1 basis into 223,247,242 common shares of the company. The common shares are subject to a hold period expiring on Oct. 17, 2016.

            LPG
            Jul 29, 2016 29:56 PM

            As per RPM December 2015 Corporate presentation, # of shares, on a diluted basis, were 150.1mn.
            Running the maths post Florida Canyon acquisition, IF my calculations are correct, I get a fully diluted share count of 434.5mn…
            My 2cts.
            LPG

            Jul 29, 2016 29:11 PM

            That’s the number I got too.
            So 435,000,000 shares at $.40 = $174,000,000 market cap.
            Sounds like RPM is a little ahead of itself.
            I still believe there were be a sell off when the shares become tradable.

    DFS
    Jul 29, 2016 29:39 PM
      LPG
      Jul 29, 2016 29:52 PM

      Thanks for this CFS.

      To me, it was 20mn of almost non-stop disappointment.
      Nothing much really substantial, nor really valuable.

      Removing the marketing fluff, the message is:
      1) buy dips/stay the course
      2) this is just the beginning of a multi-year bull.
      3) lots of institutional money has not participated in the rally YTD.
      These 3 points could have fit in a 2mn segment.

      Don’t get me wrong: I enjoy listening to Michael: he’s a brilliant mind. But this interview is empty: it’s 95% about selling his next report publication.

      Thanks for the link though.

      Best,

      LPG

        DFS
        Jul 29, 2016 29:23 PM

        Unfortunately, I agree.
        But at least, it suggests buying dips, not sell the peaks.
        I wonder if hs new group is lithium or uranium. Or it could be pgm, but there’s not many stocks in pgm.

          LPG
          Jul 29, 2016 29:07 PM

          FWIW, I personally think it’s PGM group – because there arent’ many names in that space indeed.
          Best,
          LPG

        Jul 30, 2016 30:50 AM

        LPG, is that what KWN is really all about?

    DFS
    Jul 29, 2016 29:19 PM

    NOTE:
    After it chose not to cut deposit rates for Japanese banks deeper below zero today, the Bank of Japan did say it’ would be doubling quantitative easing money-creation to buy exchange-traded trust funds holding Japanese assets, raising its spend on ETFs to the equivalent of $58 billion per year, and it would also increase its lending of US Dollars.

    Jul 30, 2016 30:40 AM

    Thanks for all your input.

    In my mind, the issue here is that RPM is definitely not going the way of so many juniors.

    The Company probably will, in fact, grow and eventually become very successful.

    It is definite not a short term scam like so many other juniors.

    DFS
    Jul 30, 2016 30:02 PM

    I own shares and am not planning on selling soon, Big Al.