VANCOUVER, June 17, 2016 /CNW/ - Donald Smith Value Fund, L.P. (the "Fund") reports that it has acquired deemed beneficial ownership and control of 45,500,000 common shares ("Common Shares") of Rye Patch Gold Corp. ("Rye Patch"), representing 24.0% of the deemed outstanding Common Shares, through the private placement purchase from Rye Patch on June 16, 2016 of 45,500,000 subscription receipts ("Subscription Receipts") at Cdn.$0.22 each for total consideration paid of Cdn.$10,010,000. Each Subscription Receipt will automatically convert into one Common Share upon the terms thereof following the satisfaction of certain escrow release conditions.
Through the Fund's acquisition of the Subscription Receipts, it currently has deemed beneficial ownership of 45,500,000 Common Shares, representing 24.0% of the deemed outstanding Common Shares. The Fund did not beneficially own any securities of Rye Patch previously. After giving effect to the conversion of all Subscription Receipts issued by Rye Patch, and assuming no other issuances of Common Shares by Rye Patch or acquisition of Common Shares by the Fund, the Fund would have beneficial ownership of approximately 12.4% of the then issued and outstanding Common Shares.
The Fund has acquired the Subscription Receipts (and eventual underlying Common Shares) for investment purposes. The Fund may acquire additional Common Shares or dispose of Common Shares (through market or private transactions) from time to time.
Donald Smith Value Fund, L.P.
"Donald Smith"
Per:
Donald Smith, Managing Member
SOURCE Rye Patch Gold
