Rye Patch Gold Corp. (CVE:RPM) (PINK:RPMGF) stock price shot up after the company made a move to secure some mineral claims.
RPM stock price gained 84.4% on Monday and had only a small 2.8% correction on Tuesday despite a humongous trading volume of 7.93 million, more than 15 times the average of 510 thousand.
This was a reaction to the promising news Rye announced on December 5. Apparently, the company challenged the ownership rights of Coeur d’Alene Mines Corporation (TSE:CDM) to a part of claims on Rocherster property in Nevada.
The claims were unpatented, allowing for a dispute to arise over up to 20% of the mineral reserves on the property in question.
The lawsuit was directed at a subsidiary of Coeur d’Alene, Coeur Rochester, Inc. The situation escalated after Coeur Rochester failed to pay the annual federal mining claim maintenance fees for the unpatented claims, which by law became forfeited.
Naturally, the potential to expand their wealth was warmly welcomed by the market with what seems to be a temporary price jump. RPM stock’s value jumped above the resistance at 45 cents, which has now become a support. The price is likely to slowly deviate back down as it will take time to see the outcome of this lawsuit and will carry uncertainties till then.
Rochester produced close to 1 million ounces of silver and 4.3 thousand ounces of gold during the first nine months of 2011.
