West Vancouver, British Columbia – October 4, 2017 – International Bethlehem Mining Corp. (“International Bethlehem”) and Rainy Mountain Royalty Corp. (“Rainy Mountain”) are pleased to announce that the two companies have entered into an option agreement (the “Option Agreement”). Pursuant to the Option Agreement, International Bethlehem has been granted the option (the “Option”) to acquire an undivided 90% interest in certain mining claims, referred to as the Powell Property, held by Rainy Mountain in Ontario, Canada (the “Property”), on the terms and conditions of the Option Agreement and subject to the approval of TSX Venture Exchange (the “Exchange”).
In order to exercise the Option and acquire an undivided 90% interest in the Property, International Bethlehem is required to: (i) issue 2,000,000 common shares of International Bethlehem to Rainy Mountain; and (ii) incur exploration expenditures in the aggregate amount of $1,000,000 on the Property over a five year period commencing on the date the Exchange approves the Option Agreement. Upon exercise of the Option, International Bethlehem and Rainy Mountain will, in good faith, negotiate and enter into a joint venture agreement provided, however; that International Bethlehem has the option to purchase the 10% interest retained by Rainy Mountain upon exercise of the Option in full in exchange for 1,000,000 shares of International Bethlehem and a 2% net smelter royalty on the Property.
The Option Agreement is considered to be a non-arm’s length transaction and remains subject to approval by the Exchange.
The Property was originally acquired in 2004 by Rainy Mountain and subsequently joint ventured with Mega Uranium Ltd. The Property has had extensive grids (over 110 km) and Induced Polarization (“IP”) surveys, and a limited amount of drilling and trenching, which exposed a number of gold showings. This work was carried out by Fairmont Resources (“Fairmont”). The most recent drill program on the Property, also carried out by Fairmont, occurred in 2011 and yielded 2.91 gm Au/1.55m and 8.45 gm Au/1.9 m (as reported in Fairmont’s news release of June 14, 2011). The IP surveys have outlined 3 major shear zones which extend South West from the Ardeen Mine and other shears extending from the Moss Lake gold deposit now being developed by a Wesdome Gold Mines Inc. subsidiary, Moss Lake Gold Mines Ltd.
Furthermore, International Bethlehem is pleased to announce that the Exchange has granted it an extension to file certain documents regarding its Tier 2 Continued Listing Requirements (the “Tier 2 CLR”). As disclosed International Bethlehem’s news release dated June 28, 2017, the Exchange had determined International Bethlehem did not meet the Exchange’s Tier 2 CLR. As a result, the Exchange had given International Bethlehem until September 29, 2017 to submit documentation that it met the Tier 2 CLR requirements. This deadline has now been extended until November 29, 2017. The entering into of the Option Agreement will partially assist International Bethlehem in fulfilling the Tier 2 CLR.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922-2030 or visit International Bethlehem’s website at www.bethlehemmining.com or Rainy Mountain’s website at www.rmroyalty.com.
INTERNATIONAL BETHLEHEM MINING CORP. RAINY MOUNTAIN ROYALTY CORP.
“Douglas L. Mason” “Douglas L. Mason”
__________________________ __________________________
Douglas L. Mason, CEO Douglas L. Mason, CEO
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