News Release No. 16-04
Trading symbol: TSX-V: RMO
Rainy Mountain Granted Option to Acquire Brunswick Twp. Property, Ontario
West Vancouver, British Columbia, September 2, 2016 – Rainy Mountain Royalty Corp. (the “Company” or ‘Rainy Mountain”) is pleased to report that, subject to regulatory approval, it has been granted an option to acquire an undivided 100% interest in a 19 claim unit property located in Brunswick Twp., Ontario (the “Brunswick Property”). The Brunswick Property covers a 6 mile (9.6 km) long part of the Ridout Shear Zone and adjoining the Temiskaming sediment and volcanic belt in the Porcupine Mining Division, Ontario. Access to the Property is by way of bush road connecting to Hwy 560 that links to Hwy 144 to Timmins, Ontario. The main CNR rail line passes west of the Brunswick Property.
The Brunswick Property is currently owned by Michael Tremblay of Wawa, Ontario (as to 50% interest) and Fiorella Santamaria of Sault Ste. Marie, Ontario (as to 50% interest) (the “Optionors”). Under the Option Agreement, Rainy Mountain can earn a 100% interest in the Brunswick Property by making a series of cash payments over five years (totaling $150,000) and issuing a total of 300,000 shares in 3 installments (100,000 shares upon approval of the option agreement by the TSX Venture Exchange (the “Effective Date”); 100,000 shares 12 months following the Effective Date; and 100,000 shares 24 months following the Effective Date). If an indicated resource is outlined for the Brunswick Property by the Company, a further 100,000 bonus shares will be issued to the Optionors. At the Company’s election, any cash payment may be paid in shares (based on the 10 day trading average for the Company’s shares as of the due date for such cash payment). A 2% NSR has been retained by the Optionors and Rainy Mountain has the right to purchase one half thereof (1% NSR) at any time for $1.0 million, and as well, the Company has a right of first refusal to purchase the remaining 1% NSR.
Subject to completing a financing, a work program consisting of trenching, channel sampling, line cutting for geophysics and mapping, IP surveys and drilling is being planned.
This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as the Company’s Qualified Person for the Brunswick property project, in accordance with regulations under NI 43-101.
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, President & CEO
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.