SOURCE: Rae-Wallace Mining Company

Rae-Wallace Mining Company

March 02, 2011 13:28 ET

Rae-Wallace Mining Company Strengthens Management Team, Raises CDN$723,250 in Brokered Private Placement

RENO, NV--(Marketwire - March 2, 2011) - Rae-Wallace Mining Company (PINKSHEETS: RAEW) ("Rae-Wallace" or the "Company") today provided a corporate update to shareholders, announcing additions to its management team and the recent closing of a brokered private placement (the "Placement"). Proceeds raised in the placement will be used to fund the Company's gold and silver exploration in Peru and as working capital.

Rae-Wallace is pleased to report that Andres Tinajero has been named Chief Financial Officer ("CFO"), Christopher Irwin has been named Corporate Secretary and Legal Counsel, and Scott Monroe has been named Director General (Peru). Mr. Monroe will manage the Company's Peruvian exploration programs from its regional office in Lima.

Mr. Tinajero has more than 15 years of experience supporting a broad range of industries, including manufacturing, mining, and retail. He has strong business and accounting skills, serving in leadership roles including Controller and CFO for several public Canadian companies. He is currently CFO of Trelawney Mining & Exploration and Vena Resources. He holds Bachelors & Masters degrees in Business Administration and is a Member of the Canadian Institute of Certified Management Accountants and the Certified Practicing Accountants of Australia.

Mr. Irwin has nearly 20 years of experience advising public mineral exploration companies. He is a partner at Irwin Lowy LLP and a member of the Law Society of Upper Canada. He has expertise in private placements and corporate agreements including joint ventures and merger and acquisition deals. He has served as an Officer or Director of several public companies, including Trelawney Mining & Exploration, Portage Minerals, and Auriga Gold Corp. He holds degrees from Bishops's University, the University of New Brunswick, and Osgoode Hall Law School of York University.

Mr. Monroe has worldwide experience as a geologist and exploration manager. During a 28-year career at Cominco and Teck Cominco, he managed programs in the U.S., Brazil, Argentina, and Namibia, and was General Manager of Cominco and Teck Exploration offices in Turkey, Peru, Chile, and Mexico. He has directly contributed to the discovery of one gold mine and a number of large-scale gold and base metal projects in Nevada, Turkey, and Mexico. He is currently the Director General of Intercore Perforaciones S de RL de CV, a Mexican-based diamond drilling company with several drill rigs and crews working in Latin America. Mr. Monroe holds a Master's degree in Geology from Western Washington University.

Rae-Wallace is also pleased to report that it successfully raised CDN$723,250 (Canadian funds) through the Placement which closed (in two tranches) on December 7, 2010 and December 30, 2010. Terms of the Placement were CDN$0.25 for one unit (a "Unit"), with each Unit consisting of one common share (a "Common Share"), one Common Share purchase warrant (a "Warrant"), and one liquidity entitlement (a "Liquidity Entitlement"). Each Warrant entitles its holder to purchase one Common Share for a period of 24 months following a Liquidity Event (defined below) at a price equal to the lesser of CDN$0.50 and the exercise price of any warrants issued in connection with a Liquidity Event. Each Liquidity Entitlement entitles the holder to one additional Common Share for each 10 Units purchased under the Placement if, by June 7, 2011, the Company does not complete a Liquidity Event, defined as: completing an initial public offering ("IPO") in Canada, becoming a reporting issuer in the Province of Ontario, and obtaining conditional approval for the listing of its Common Shares on a recognized Canadian stock exchange.

The Company sold 2,893,000 Units in the Placement, netting CDN$687,088 after broker commissions. The Company also issued 13,000 broker warrants ("Broker Warrants") in conjunction with the Placement, with each Broker Warrant entitling its holder to purchase one Common Share for CDN$0.50, and expiring on September 30, 2012. Rae-Wallace now has 19,588,500 Common Shares outstanding and 25,722,550 Common Shares, fully-diluted.

Rae-Wallace also announced today the launch of its new corporate website at

Rae-Wallace Mining Company is exploring drill-ready gold and silver properties along the prolific mineral belts of Peru, the world leader in foreign mining investment. The Company is led by senior industry executives and skilled explorationists, experienced at the identification, acquisition, and development of successful, large-scale, international mining projects. The Company has prominent corporate shareholders and features a tight share structure, allowing room for acquisitions and financing while providing investors outstanding leverage to discovery. Rae-Wallace stock currently trades on the OTC market under the symbol "RAEW."

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

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    George Cole
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