News Releases: No. 10-03
Consolidation, Name Change and Continuance
West Vancouver, British Columbia – February 5, 2010 – Rainy Mountain Royalty Corp. (the “Company”) is pleased to announce that it has changed its name from “East West Resource Corporation” to “Rainy Mountain Royalty Corp.” The trading symbol for the Company has now changed to “RMO” effective as of the opening of the market today. In connection with this change of name, the Company also announces that it has consolidated its share capital on a five old shares for one new share basis and has continued its corporate jurisdiction out of the Province of Ontario and into the Province of British Columbia. Following the share consolidation the Company has 26,039,120 common shares outstanding.
The name change, consolidation and change of corporate jurisdiction form part of the Company’s transaction (the “Proposed Transaction”) with Rainy Mountain Capital Corp. (“Rainy Mountain”), a capital pool company whose common shares are listed on the TSX Venture Exchange (the “Exchange”). As part of the Proposed Transaction, Rainy Mountain has agreed to subscribe for approximately 3,750,000 postconsolidation common shares (the “Securities”) of the Company pursuant to a private placement transaction (the “Private Placement”), which Securities will subsequently be distributed to the shareholders of Rainy Mountain. Upon the distribution of the Securities to the shareholders of Rainy Mountain, the shareholders of Rainy Mountain will become shareholders of the Company and Rainy Mountain will be dissolved. As a capital pool company, the only asset that Rainy Mountain has is its cash. The Private Placement is intended to serve as Rainy Mountain’s “Qualifying Transaction” under the policies of the Exchange. The Company anticipates completing the Proposed Transaction prior to the end of this month.
As summarized in the letter of intent, White Tiger can acquire up to a 50% joint venture interest in the Marshall Lake project by incurring over a 5 year period $4,000,000 in exploration expenditures on the Property and issuing 2,000,000 shares. As a result, White Tiger can earn a 12 ½ % joint venture interest in the Marshall Lake project for each $1,000,000 of exploration expenditures incurred. As well, once White Tiger has completed all of its share and spending commitments, it has the additional option to increase its interest to 75% by incurring such additional expenditures as are necessary to take the Marshall Lake project to bankable feasibility stage.
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