Alio Gold, Rye Patch Complete Business Combination
OREANDA-NEWS. May 28, 2018. Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio Gold” or the “Company”) and Rye Patch Gold Corp. (TSX-V:RPM) (OTCQX:RPMGF) (FWB:5TN) (“Rye Patch”) are pleased to announce that Alio Gold has completed the previously announced acquisition of all of the issued and outstanding shares of Rye Patch by way of a plan of arrangement (the “Arrangement”). The Arrangement was approved by the Supreme Court of British Columbia in its final order dated May 25, 2018.
The Arrangement was completed pursuant to the Business Corporations Act (British Columbia). Pursuant to the terms of the Arrangement, Rye Patch shareholders received 0.48 of an Alio Gold share and C$0.001 in cash for each Rye Patch share held.
In connection with the closing of the Arrangement, Alio Gold increased the size of its board of directors to nine, with former Rye Patch directors Tim Baker and John Mansanti being appointed to the Alio Gold board of directors. Alio Gold also appointed Doug Jones, the former Chief Operating Officer of Rye Patch, as the Chief Operating Officer of Alio Gold. It is expected that the Rye Patch shares will be de-listed from the TSX-V Exchange on May 30, 2018 and that Rye Patch will cease to be a reporting issuer shortly thereafter.
About Alio Gold
Alio Gold is a growth oriented gold mining company, focused on exploration, development and production in Mexico. Its principal assets include its 100%-owned and operating San Francisco Mine in Sonora, Mexico and its 100%-owned development stage Ana Paula Project in Guerrero, Mexico. Located within the highly prospective Guerrero Gold Belt on 56,000 hectares of underexplored land, the Ana Paula Project is a high-grade, high margin project currently in the definitive feasibility stage. An underground decline to provide access for an exploration drill program has been initiated. The drill program will target the continuation of the high-grade gold mineralization below the proposed pit which has the potential to significantly enhance the robust economics of the project. The Company also has a portfolio of other exploration properties, all of which are located in Mexico.
About Rye Patch Gold
Rye Patch’s assets are all located in Nevada, USA and include its 100%-owned Florida Canyon Mine. The mine is a past producing, open pit, heap leach operation that was recently restarted and achieved commercial production in December 2017. Rye Patch also controls a sizeable 18,000 hectare land package along the Oreana Trend in Nevada with a 100% interest in Lincoln Hill, a PEA stage, open pit gold-silver project and a 100% interest in Wilco, a gold silver project with an NI 43-101 resource. Rye Patch also holds the Gold Ridge and Garden Gate Pass exploration properties.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which we refer to collectively as “forward-looking statements”. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in the news release herein by reference include, but are not limited to statements which relate to future events. Such statements include future trends, plans, strategies, objectives and expectations with respect to Alio Gold after its acquisition of Rye Patch, the intention to cause the Rye Patch shares to be delisted from the TSX Venture Exchange and the submission of the application by Rye Patch to cease to be a reporting issuer.