CRI Churchill Resources Inc

Rye Patch Gold Corp (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the
"Company") announces recent events in the lawsuit among the Company and its
wholly-owned subsidiary Rye Patch Gold US Inc. against Coeur Rochester, Inc.
("CRI"). The lawsuit involves ownership of unpatented mining claims which Rye
Patch Gold US Inc. located in the fall of 2011 on public lands owned by the
United States of America. The lands became open for the location of unpatented
mining claims on September 1, 2011, when CRI failed to pay the federal annual
mining claim maintenance fees required by United States law. Because CRI did not
pay the fees, its former unpatented mining claims became void, and the public
lands became open for the location of unpatented mining claims by any United
States citizen or company. 


In 2012, the United States Bureau of Land Management issued its decision
officially declaring that the former CRI claims are void. CRI's parent
corporation Coeur d'Alene Mines Corporation reported that CRI failed to pay the
claim maintenance fees and their former claims are void.


In order to protect its rights under the United States mining law principle of
pedis possessio - a doctrine established by the United States Supreme Court to
protect the owner of a senior unpatented mining claim who is working on his
claim to complete a discovery of minerals - and to prevent CRI from entering on
the Rye Patch Gold US Inc. senior mining claims, Rye Patch Gold US Inc. filed a
motion for preliminary injunction. The District Court referred the hearing of
the matter to a Special Master. On August 6, 2012, the Special Master issued a
report recommending denial of the motion for preliminary injunction on the basis
that Rye Patch Gold US Inc. had not shown evidence it would be harmed by the
activities of CRI on Rye Patch Gold US Inc.'s senior unpatented mining claims
before the trial.


The Special Master held that evidence of Rye Patch Gold US Inc.'s activities
regarding the discovery of minerals will be the subject of discovery proceedings
in the lawsuit and presentation at trial in November 2012. 


William C. Howald, President of the Company and Rye Patch Gold US Inc. stated:
"The motion for preliminary injunction was intended to freeze the status quo
until trial of the lawsuit. We believe that under the doctrine of pedis
possessio, Rye Patch Gold US Inc. as the owner of the senior unpatented mining
claims is entitled to court protection against other parties who attempt to
overstake our claims. Pedis possessio is intended to protect a senior mining
claim locator who is working diligently to develop the minerals on his mining
claim. That is exactly what we have been doing since we located our claims last
fall, and we have discovered gold and silver on our claims. Pedis possessio does
not require a discovery of minerals. It is designed to let the senior locater
make a discovery. If the court accepts the master's recommendation, it means
that the owner of an unpatented mining claim in Nevada who is diligently working
on his claim has no pedis possessio protection against someone who overstakes
his mining claim. This will jeopardize title to thousands of mining claims in
Nevada. We intend to file an objection to the Special Master's recommendation."


The District Court entered an order denying CRI's motion to avoid the filing of
a reply to the counterclaim filed by Rye Patch Gold US Inc. against CRI. The
District Court also denied CRI's motion to dismiss the separate lawsuit filed by
Rye Patch Gold US Inc. on December 5, 2011. As a result of the District Court's
orders, CRI will be required to file an answer to the Rye Patch Gold US Inc.
complaint and a reply to the Rye Patch Gold US Inc. counterclaim. 


Rye Patch Gold US Inc. controls over 100 square kilometres (40 sq. miles) along
the Oreana trend. The Rochester Property - LH and OG Claims - cover over 30
square kilometres (7,500 acres), and the mineral title is disputed by Coeur
Rochester Inc. The Sixth District Court of Nevada has enjoined Rye Patch Gold US
Inc., for safety reasons, from conducting exploration activities on
approximately 7.4 square kilometres (1,839.3 acres) covering the active open
pit, mine dumps and leach pads in the immediate Rochester Mine area. It is the
position of Rye Patch Gold US Inc. that all the LH and OG claims are valid
senior unpatented lode mining claims, including those claims within the
court-ordered enjoined area. Geologic assessment and drilling confirm
discoveries on the LH claims and the land area which covers up to 20% of
Rochester's published proven and probable silver and gold reserve along with a
significant portion of the published silver and gold resource based on Coeur's
December 5, 2011, news release. 


The Company is a Tier 1, Nevada-focused and discovery-driven company seeking to
build a sizeable inventory of gold and silver resource assets in the mining
friendly state of Nevada, USA. The Company's seasoned management team is engaged
in the acquisition, exploration, and development of quality resource-based gold
and silver projects. Rye Patch Gold US Inc. is developing gold and silver
resources along the emerging Oreana trend, located in west-central Nevada, and
is exploring 66 square kilometres along the Cortez trend near Barrick's two new
gold discoveries. The Company has established gold and silver resource
milestones and time frames in order to build a premier resource development
company. For more information about the Company, please visit our website at
www.ryepatchgold.com.


On behalf of the Board of Directors

William C. (Bill) Howald, CEO & President 

This news release contains forward-looking statements, which address future
events and conditions, which are subject to various risks and uncertainties. The
Company's actual results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a result
of numerous factors, some of which may be beyond the Company's control. These
factors include: the availability of funds, the financial position of Rye Patch
to pursue legal undertakings; the outcome of legal action relating to the
Rochester property and the LH unpatented claims, the timing and content of work
programs; results of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological data,
the uncertainties of resource and reserve estimations, receipt and security of
mineral property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in metal prices; currency fluctuations; and general
market and industry conditions. Litigation is inherently uncertain and factors
that could cause actual results to differ materially from those in
forward-looking statements include unexpected judicial findings of fact,
previously unknown facts arising, and decisions which depart from past legal
precedent and similar events.


Forward-looking statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.

Churchill Resources (TSXV:CRI)
Historical Stock Chart
From Jun 2024 to Jul 2024

Churchill Resources (TSXV:CRI)
Historical Stock Chart
From Jul 2023 to Jul 2024