West Vancouver, British Columbia – January 25, 2017 – Rainy Mountain Royalty Corp. (the “Company” or “RMO”) announces that, due to the exercise of 500,000 outstanding share purchase warrants, it has made some slight amendments to the previously announced Rights Offering (see press release dated January 24, 2017). As a result of the additional 500,000 shares issued pursuant to the exercise of warrants a total of 27,094,113 rights will now be issued to eligible shareholders resident in Canada. Two rights will entitle the holder to subscribe for one unit of the Company (a “Unit”) at a subscription price of $0.10. Each Unit will consist of one common share and one-half of one share purchase warrant, with each whole warrant (a “Warrant”) exercisable into one common share for a period of 24 months from the issuance date of the Units at a price of $0.15 for the first 12 months and at an exercise price of $0.25 thereafter.
If all the rights issued under the rights offering are validly exercised, the offering will now raise gross proceeds of approximately $1,354,705, the net proceeds of which will be used for exploration and development of the Company’s Brunswick Property, as well as for general working capital requirements. All other terms of the previously announced rights offering will remain the same.
Details of the Rights Offering
Details of the rights offering will be set out in the amended and restated rights offering notice and amended and restated rights offering circular which will be available under RMO’s profile at www.sedar.com. The amended and restated rights offering notice and accompanying rights certificate will be mailed to each eligible shareholder of the Company as at the record date. Registered shareholders who wish to exercise their rights must forward the completed rights certificate, together with the applicable funds, to the rights agent, TSX Trust Company, on or before the expiry time. Shareholders who own their common shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. Rights delivered to brokers, dealers or other intermediaries will not be delivered by those intermediaries to beneficial shareholders who are residents in a jurisdiction outside of Canada.
For further information, contact Mr. Clive Shallow, Shareholder 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, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.