East West Resource Corporation Announces Shareholder Approval To Proposed Transaction With Rainy Mountain Capital Corp.
West Vancouver, British Columbia – November 10, 2009 – East West Resource Corporation ("East West") is pleased to announce that the East West shareholders approved its proposed transaction (the "Proposed Transaction") with Rainy Mountain Capital Corp. ("Rainy Mountain") on October 26, 2009 at the East West annual special and general meeting. In addition, the shareholders of Rainy Mountain approved the Proposed Transaction in a separate annual special and general meeting held on November 6, 2009. In anticipation of the completion of the Proposed Transaction, the shareholders of East West elected as directors:
- Robert Buchan, MSc (Mineral Economics) (Chairman and Director);
- Ronald A. Coombes (President, Chief Executive Officer and Director);
- Douglas L. Mason (Director);
- Edward Yurkowski, P.Eng., B.Sc., Civil Engineering (Director);
- Sead Hamzagic, CGA (Chief Financial Officer and Director);
- Bruce E. Morley, LLB, B.Comm. (Director); and
- Sabrina Jones, B.A. (Director)
Additionally, Maurice Lavigne resigned as the President and Chief Executive Officer of the Corporation and Ronald A. Coombes was appointed in such capacity. East West wishes to thank Mr. Lavigne for his devoted service to the Company. As well, Sead Hamzagic was appointed as the Corporation's Chief Financial Officer and Robert (Bob) Middleton, PEng., will be joining the Board of Directors and will be appointed as VP, Explorations.
In connection with the Proposed Transaction, as initially referred to in its September 24, 2009 news release, East West will now be proceeding with the consolidation (the "Consolidation") of the East West shares on a five old shares for one new share basis, followed by the continuance from the Business Corporations Act (Ontario) to the Business Corporations Act (British Columbia) and concurrent name change to "Rainy Mountain Royalty Corp."
The final step of the Proposed Transaction will consist of Rainy Mountain's subscription for, on a post Consolidation basis, an aggregate of approximately 3,750,000 common shares (the "Shares") of East West at a price of $0.10 per Share to result in gross proceeds of approximately $375,000 to East West. The Shares will subsequently be distributed to the shareholders of Rainy Mountain. Upon the distribution of the Shares to the shareholders of Rainy Mountain, the Rainy Mountain shareholders will become shareholders of East West, following which Rainy Mountain will be dissolved.
East West expects to complete the Proposed Transaction by November 30, 2009.
About East West
East West was incorporated in the Province of British Columbia in 1979 and continued to the Province of Ontario on December 11, 2005. East West's exploration efforts are focused on the platinum group metals as well as copper and nickel. It has three flagship assets in Ontario: Marshall Lake (copper, zinc project), Norton-McFaulds (copper nickel, platinum group elements project), and Shebandowan (gold, copper project). These three projects are joint ventured with Marshall Lake Mining PLC, White Tiger Mining Corp., and Xstrata Copper, respectively. In addition there are eight other projects that are funded by joint venture partners.
East West Resource Corporation
Ronald A. Coombes, President and CEO
Certain information regarding East West Resource Corporation contained herein may constitute forward looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although East West Resource Corporation believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. East West Resource Corporation cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what East West Resource Corporation currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.