News Releases: No. 10-04
Rainy Mountain Royalty Corp. Announces Completion of Financing and Completion of Transaction with Rainy Mountain Capital Corp.
West Vancouver, British Columbia – February 24, 2010 – Rainy Mountain Royalty Corp. (the “Company”) is pleased to announce that, as outlined in its February 5, 2010 news release, it has issued an aggregate of 3,750,000 common shares (the “Securities”) of the Company to Rainy Mountain Capital Corp. (“Rainy Mountain Capital”), a capital pool company whose common shares are listed on the TSX Venture Exchange (the “Exchange”), at $0.10 per Security for aggregate gross proceeds of $375,000 (the “Private Placement”). The Securities are subject to a four month hold period expiring on June 23, 2010. The proceeds from the Private Placement will be used for further exploration of the Issuer’s mineral property interests and for general working capital purposes.
The Securities will subsequently be distributed to the shareholders of Rainy Mountain Capital. Upon the distribution of the Securities to the shareholders of Rainy Mountain Capital, the shareholders of Rainy Mountain Capital will become shareholders of the Company and Rainy Mountain Capital will be dissolved. As a capital pool company, the only asset that Rainy Mountain Capital has is its cash. The Private Placement serves as Rainy Mountain Capital’s “Qualifying Transaction” under the policies of the Exchange.
The Private Placement constitutes the final step in the Company’s transaction (“Transaction”) with Rainy Mountain Capital. As part of the Transaction, the Company changed its name from “East West Resource Corporation” to “Rainy Mountain Royalty Corp.”, consolidated its share capital on a five old shares for one new share basis and continued its corporate jurisdiction out of the Province of Ontario and into the Province of British Columbia.
For further information, contact Mr. Clive Shallow, investor communications, at 604-922-2030 or visit the Company’s website at www.rmroyalty.com (an updated Rainy Mountain Royalty Corp. website is currently being developed).
Rainy Mountain Royalty Corp.
"Douglas L. Mason"
Douglas L. Mason, CEO