News Release No. 11-01
Rainy Mountain Grants Option on its PGE Seagull Property, Ontario
West Vancouver, British Columbia – February 24, 2011 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to report that it has granted an option to Minfocus International Inc. of Toronto, Ontario (the “Optionee”) entitling the Optionee to earn an interest in the Company’s jointly owned Seagull property. The Seagull property is a platinum group element (“PGE”) property and is located approximately 90 km north-northeast of Thunder Bay, Ontario (via Hwy 527).
The Seagull property is currently owned by Black Panther Mining Corp. of West Vancouver, British Columbia (as to a 40% interest) with Trillium North Mineral Ltd. of Toronto, Ontario and Rainy Mountain each owning a 30% interest (collectively the “Optionors”). Under the Option Agreement, the Optionee has the initial option to earn a 55% interest in the property from the Optionors collectively upon paying the sum of $55,000 and issuing 50,000 shares of Minfocus (which shares and cash payment will be allocated to the Optionors on a pro rata basis). Additionally, the Optionee is required to pay the Optionors $25,000 (in cash and/or shares of the Optionee) on the 12 month anniversary, the 24 month anniversary and the 36 month anniversary of the Option Agreement. Also, the Optionee is required to incur exploration expenditures on the Seagull property in the amount of $250,000 in each year of the 4 year initial option term.
As well, the Optionee can earn a 70% interest in the Seagull property by incurring an additional $2,000,000 in expenditures against the property during the initial 4 year option term. Further, the Optionee has the right to increase its interest to 85% by completing a feasibility study on the property within a 5 year period following the initial option term.
For further information, contact Mr. Clive Shallow, investor communications at 604-922-2030 or visit the Company's website at www.rmroyalty.com.
Rainy Mountain Royalty Corp.
“Douglas L. Mason”
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Douglas L. Mason, CEO
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