Rye Patch Gold Corp has secured financing for the purchase of four additional Caterpillar 785C haul trucks for a total of $3.67 million dollars, growing the Florida Canyon gold mine truck fleet to 15. “This purchase will enable the company to increase its production by taking advantage of excess capacity at the crusher. The crusher is routinely operating at 20 to 40% over plan requirements and is permitted at 60% over plan at 1,600 t/h, effectively bringing the 2018 expansion forward,” William Howald, Rye Patch CEO commented.
The purchase price will be financed by Caterpillar Finance, consisting of a 20% down payment with the balance repayable in equal installments over 48 months bearing annual interest at 6.95%. A portion of the $10 million equity raised by the company in June, 2017 will be applied in this purchase consistent with the use of proceeds described in the prospectus.
The trucks are in excellent condition with full service histories and have an average of 30,000 hours on each. Expected delivery will be in early fourth quarter 2017.
Rye Patch Gold is a Nevada based, Tier 1, mining company engaged in the mining and development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon gold mine, Rye Patch Gold now controls a trend-scale platform with mining operations, resource projects and exploration upside. The combination of operations and organic growth along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value added potential.
The Florida Canyon mine is located half way between Lovelock and Winnemucca, Nevada, and some 30 km north of the company’s Wilco, Lincoln Hill and Gold Ridge projects. The mine sits immediately adjacent to Interstate 80 and is located approximately 210 km northeast of Reno, Nevada.
Currently, the mine is producing from its existing leach pad facilities. The company plans to construct a new heap leach pad and waste storage facility to complete a planned layback of the existing pit area. Initial production from the new leach pad is expected within six months and commercial production growing toward 75,000 oz/y of gold is expected three months later.