JOHANNESBURG (miningweekly.com) - Nevada-based miner Rye Patch Gold has completed a private placement whereby it issued 15.38-million units at $1.30 apiece to raise $20-million.
Each unit comprised one common share and one share purchase warrant, which is exercisable to acquire one common share at an exercise price of $1.65 until January 31, 2020.
The net proceeds will be used for debt servicing, working capital and the continued ramp-up of Rye Patch's Florida Canyon mine, near Reno, Nevada.
The fully permitted gold mine started production after a rehabilitation period in the second quarter of last year. Rye Patch expects Florida Canyon to achieve commercial production from the new leach pad during this quarter.
A preliminary economic assessment, which was completed based on a $1 000/oz gold price for the first two years and a $1 150/oz gold price for the remaining mine life, determined that the mine would deliver average production of 75 000 oz/y over the eight-year mine life.