Royalty Holder……..Rye Patch Gold
Revenue……………..…..………………$5m
Mine Life...……………..………..20 years
Commodity……………….Silver & Gold
Operator…………………..Coeur Mining

#5 Rochester

Chicago-based Coeur Mining must wonder why it ever opened its mine gates to a Geological Society field trip in Nevada in 2010.

Amongst the jolly party of rock-lovers was William Howald, the bright-eyed CEO of explorer Rye Patch Gold. After spotting a clerical error in Coeur's mining claims, he staked ground over its Rochester open-pit operation, notified the company and after legal action, settled by taking a 3.4 per cent royalty over the entire deposit.

Rochester produced 4.2m ounces of silver last year and 45,000 ounces of gold, but Howald also recently spotted a $313,000 shortfall in Rye's royalty receipts. He has escalated the matter, filing “a demand for arbitration.”

The Rochester royalty, which bankrolls Rye Patch's exploration activities, is capped at 39.4m ounces of silver equivalent and is subject to a right of first refusal held by Coeur. American smelting giant ASARCO, which escaped bankruptcy in 2009 via a buyout by Grupo Mexico, also holds a royalty over Rochester.

 

 

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