Rainy Mountain to Acquire an Additional 50% Interest in Powell Property
News Release No. 16-03
Trading symbol: TSX-V: RMO
Rainy Mountain to Acquire an Additional 50% Interest in Powell Property
West Vancouver, British Columbia, August 26, 2016 – Rainy Mountain Royalty Corp. (the “Company” or ‘Rainy Mountain”) is pleased to announce that it has entered into an agreement with Mega Uranium Ltd. (“Mega”) to acquire its 50% interest in the Powell Property. Prior to the acquisition, the Powell Property was jointly owned (50/50) by the Company and Mega. In consideration for Mega’s 50% interest in the Property and, subject to regulatory approval, Rainy Mountain will issue 500,000 shares to Mega. Upon closing, Rainy Mountain will own 100% of the Powell Property.
The Powell Property consists of 13 claims and is located approximately 125 km west of Thunder Bay, Ontario in the Shebandowan greenstone belt. Rainy Mountain also owns the Clay Property, consisting of 10 claims contiguous to the Powell Property. Combined, the Clay-Powell Property is 10 km long, consisting of 23 claims or 194 units (3104 Ha). Upon closing, the Clay-Powell Property will be 100% owned by Rainy Mountain.
The Powell Property was originally acquired in 2004 by Rainy Mountain Royalty Corp. and subsequently joint ventured with Mega. The property has had extensive grids (over 110 km) and IP surveys, and a limited amount of drilling and trenching, which exposed a number of gold showings. This work was carried out by Fairmont Resources (“Fairmont”). The most recent drill program on the Powell Property, also carried out by Fairmont, occurred in 2011 and yielded 2.91 gm Au/1.55m and 8.45 gm Au/1.9 m (as reported in Fairmont’s news release of June 14, 2011). The IP surveys have outlined 3 major shear zones which extend South West from the Ardeen Mine and other shears extending from the Moss Lake gold deposit now being developed by a Wesdome Gold Mines Inc. (“Wesdome”) subsidiary, Moss Lake Gold Mines Ltd.
The Powell Property is also contiguous with the Hamlin Property recently purchased by Wesdome, where a large copper-gold-silver IOCG system was outlined by Rainy Mountain in 2005-2007, and subsequently drilled further by Xstrata Copper (now owned by Glencore plc) in 2008-2012.
This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as the Company’s Qualified Person for the Marshall Lake property project, in accordance with regulations under NI 43-101.
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”
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Douglas L. Mason, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
