Rainy Mountain Closes Non-Brokered Private Placement
West Vancouver, British Columbia – October 27, 2016 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to announce that, further to its news releases dated September 6, 2016 and September 28, 2016, Rainy Mountain has closed its non-brokered private placement (the “Private Placement”). The Company has raised gross proceeds of $680,665 by the issuance of 2,954,000 flow through units (the “FT Units”) at $0.075 per FT Unit and 7,651,916 non-flow through units (the “NFT Units”) at a price of $0.06 per NFT Unit. Each FT Unit consists of one flow through common share and one non-flow through share purchase warrant, with each warrant entitling the holder to purchase an additional non-flow through common share for a period of one year at an exercise price of $0.10. Each NFT Unit consists of one common share and one share purchase warrant, with each whole warrant entitling the holder to purchase an additional common share for a period of 2 years at an exercise price of $0.10. In connection with the Private Placement, finders’ fees were paid in the amount of $23,992.50. All of the securities issued pursuant to this Private Placement are subject to a hold period expiring on February 27, 2017.
Douglas Mason, the President and Chief Executive Officer of the Company (“Mason”), purchased 2,000,000 units (the “Units”) pursuant to the Private Placement, of which 750,000 Units are flow through Units and 1,250,000 Units are non flow through Units. Mason now holds 2,365,875 common shares representing approximately 9.12% of the outstanding common shares of the Company, 3,800,000 common share purchase warrants and 307,000 stock options to purchase common shares of the Company, that, if exercised in full, would result in Mason holding 6,472,875 common shares of the Company, or approximately 21.55% 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, President & CEO
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