Rise Gold Announces Receipt of $702,000 with Regards to Property Sale
Rhea-AI Summary
Rise Gold Corp (OTCQX: RYES) has received a $702,000 payment related to its property sale announced on November 27, 2024. This payment represents a negotiated, discounted acceleration of a $900,000 payment originally due in 2026, as part of a larger $4.3 million land sale transaction involving 66 acres of industrial land adjacent to the Idaho-Maryland Mine Property.
The sale comprises two transactions: First, 16 acres for $1.8 million, with $900,000 received at closing and the now-accelerated $702,000 payment. Second, 50 acres for $2.5 million, expected to close on May 26, 2025, with the buyer currently paying monthly rent of $12,500. The buyer has placed $200,000 in escrow.
Rise Gold maintains a repurchase option for the 66 acres if it obtains mining operation approvals. The company retains ownership of the 53-acre I-M Mine Property, 56-acre Centennial property, and 2,585 acres of mineral rights. The proceeds will fund debt repayment and legal claims against Nevada County regarding mining rights.
Positive
- Received $702,000 in accelerated payment from property sale
- Additional $2.5 million expected from second land sale transaction in May 2025
- Receiving $12,500 monthly rent payments until second transaction closing
- Maintains repurchase option for sold land if mining approvals obtained
Negative
- Selling substantial land assets to fund operations and legal battles
- Facing legal challenges with Nevada County over mining rights
- Risk of mineral estate losing all value if Writ is unsuccessful
News Market Reaction – RYES
In the trading session that priced this news, RYES declined 9.02%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Grass Valley, California--(Newsfile Corp. - January 16, 2025) - Rise Gold Corp. (CSE: RISE) (OTCQX: RYES) (the "Company") announces it has received a
On November 27, 2024, Rise announced the sale of 66 acres of industrial land located adjacent to the Company's Idaho-Maryland Mine Property (the "I-M Mine Property") for
The second sale agreement covers 50 acres of land for total sale price of
Rise and the purchaser have also executed an option agreement whereby the Company may repurchase the 66 acres of land being sold for the sale price plus the cost of any capital improvements plus an increase of five percent per year on the condition that Rise acquires final government approvals to perform mining operations at the I-M Mine Property.
The Company retains ownership of the I-M Mine Property, which is comprised of 53 acres of land surrounding the New Brunswick shaft, as well as its nearby 56-acre Centennial property, and it retains all of its 2,585 acres of mineral rights.
The Company will use the sale proceeds to repay debt and to fund its legal claims against Nevada County (the "County"). As previously disclosed in its press release dated May 13, 2024, the Company has submitted a Writ of Mandamus (the "Writ") to the Superior Court of California for the County of Nevada (the "Court") asking the Court to compel the Board of Supervisors of Nevada County to follow applicable law and grant Rise recognition of its constitutionally-protected, grandfathered vested right to operate the Mine.
Rise's litigation attorneys at Cooper & Kirk have advised the Company that should the Writ be unsuccessful, Rise's mineral estate will lose all value, which will allow Rise to bring a takings action in federal court against the County under the Fifth Amendment of the U.S. Constitution. The remedy for an unconstitutional taking is the payment of just compensation, which is the fair market value of the property taken. Based on comparable mines and historic yields at the I-M Mine, management believes the fair market value of Rise's mineral estate is at least
About Rise Gold Corp.
Rise Gold is an exploration-stage mining company incorporated in Nevada, USA. The Company's principal asset is the historic past-producing Idaho-Maryland Gold Mine located in Nevada County, California, USA.
On behalf of the Board of Directors:
Joseph Mullin
President and CEO
Rise Gold Corp.
For further information, please contact:
RISE GOLD CORP.
Suite 215, 333 Crown Point Circle
Grass Valley, CA 95945
T: 530.433.0188
info@risegoldcorp.com
www.risegoldcorp.com
The CSE has not reviewed, approved or disapproved the contents of this news release.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, meeting expenditure and financing requirements, compliance with environmental regulations, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237390