News Releases: No. 10-13
Rainy Mountain Grants Option On Powell and Clay Properties, Ontario
West Vancouver, British Columbia – September 22, 2010 – Rainy Mountain Royalty Corp. (the “Company”) together with its joint venture partner, Mega Uranium Ltd. (“Mega”), have entered into an option agreement with Fairmont Resources Inc. (“Fairmont”) entitling Fairmont to acquire a 70% interest in its Powell and Clay Properties. Under the option agreement, Fairmont has agreed to issue 400,000 common shares and incur an aggregate of $1,000,000 in exploration expenditures on the Properties over three years. The Clay Property is 100% owned by Rainy Mountain and the Powell Property is 50% owned by Rainy Mountain and 50% owned by Mega. Based on Rainy Mountain’s ownership interest in the Properties, Rainy Mountain will receive 280,000 shares of the 400,000 shares of Fairmont to be issued under the option agreement. The option agreement is subject to TSX Venture Exchange approval.
The Powell Property consists of 11 claims (78 units) and the Clay Property consists of 10 claims (109 units) and both properties are contiguous. The Properties are road accessible and are linked to Hwy 11, 115 km west of Thunderbay, Ontario.
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.
"Ronald A. Coombes"
Ronald A. Coombes, President & CEO