Rainy Mountain Closes Non-Brokered Private Placement
West Vancouver, British Columbia – May 3, 2017 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to announce that, further to its news releases dated March 6, 2017 and April 19, 2017, Rainy Mountain has closed its non-brokered private placement (the “Private Placement”). The Company has raised gross proceeds of $465,000 by the issuance of 4,650,000 non-flow through units (the “Units”) at a price of $0.10 per Unit. Each Unit consists of one common share and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase an additional common share for a period of 24 months at an exercise price of $0.15 for a period of 12 months and at an exercise price of $0.25 thereafter. All of the securities issued pursuant to this Private Placement are subject to a hold period expiring on September 3, 2017.
Douglas Mason, the President and Chief Executive Officer of the Company (“Mason”) purchased, directly and indirectly, an aggregate of 1,750,000 Units pursuant to the Private Placement. Mason now holds 2,025,000 common shares representing approximately 4.44% of the outstanding common shares of the Company, 4,202,500 common share purchase warrants and 847,000 stock options to purchase common shares of the Company, that, if exercised in full, would result in Mason holding 7,074,500 common shares of the Company, or approximately 13.96% of the Company’s then issued and outstanding common shares, assuming no other common shares of the Company are issued. Mason acquired the Units for investment purposes and may from time to time, increase or decrease his ownership position in the future in the market or privately as circumstances warrant. A copy of the early warning report filed by Mason in connection with the purchase of the Units is available on the SEDAR website at www.sedar.com or by contacting the Company at 604-922-2030.
The Company intends to use the proceeds from this Private Placement for furthering exploration on Rainy Mountain’s optioned Brunswick Property in Ontario, and for general working capital purposes.
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”
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 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, including the use of proceeds of the private placement, are forward-looking statements. Forward-looking statements are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “suspects”, “intends”, “estimates”, “projects”, ”targets”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results 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 for the Company’s anticipated products, regulatory approvals required for the Company’s business plans, 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. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made and are subject to change after that date and the Company does not undertake any obligation to update publicly or revise any 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.