Rainy River Resources Ltd.

Rainy River Resources Ltd.

March 02, 2012 13:43 ET

Rainy River Resources Announces Exercise of $26 MM in Warrants

TORONTO, ONTARIO--(Marketwire - March 2, 2012) - Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX:RR) announces that since December 2011, holders of 3,646,450 warrants have exercised their warrants to purchase 3,646,450 common shares of the Company at a price of $7.10 per share. Total proceeds to the Company were $25,889,795. The unexercised warrants expired on February 27, 2012. The Company had 87,689,032 common shares issued and outstanding as at February 29, 2012, inclusive of the warrant exercises.

The Company issued 5,557,000 warrants under a financing which closed on March 25, 2010. By the expiry date, a total of 5,390,450 warrants were exercised, representing 97% of the warrants issued.

The Company's cash position at February 29, 2012, post-warrants, was approximately $112 million in cash and cash equivalents, which will enable the Company to fund its planned activities well into 2013. The Company's 2012 plans include expenditures of approximately $30 million for Rainy River Gold Project exploration, $26 million for engineering and development, $3 million for the TPK joint venture, and $4 million for general and administrative costs.

The Company also announces that it will be presenting and exhibiting at the 2012 Prospectors and Developers Conference ("PDAC"), to be held at the Metro Toronto Convention Centre (South Building) in Toronto from Sunday, March 4 to Wednesday, March 7, 2012. The presentations are as follows:

  • March 5: Corporate Presentation Forum, Room 802 AB at 3:40 pm EDT, presented by Raymond Threlkeld, President and CEO.
  • March 6: Technical Session Presentation, Room 716 at 4:05 pm EDT, presented by Kerry Sparkes, Vice President, Exploration.

The main Rainy River exhibit will be located at Booth 3000 on Level 800, with a second exhibit at the Core Shack on Tuesday, March 6 and Wednesday, March 7, at Booth 5025 on Level 700.

About Rainy River Resources Ltd.

Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project, a large gold system centred in Richardson Township (part of Chapple Township). As of February 29, 2012, the Company had $112 million in cash and securities, and is well funded for its 2012 plans to 1) commence a feasibility level study on the RRGP; 2) continue growing the existing resource through exploration; 3) conduct a condemnation program in areas identified for potential mine facilities; and 4) continue regional exploration. RRGP is very well located in the southwestern corner of northern Ontario, near the U.S. border. It is accessed by a network of roads and is close to hydro-electric infrastructure. The Rainy River district has a skilled labour force and is one of the lowest-cost areas for mineral exploration and development in Canada. The Company is working to advance the early-stage discoveries at its TPK Joint Venture Property, also in Ontario, where it can earn a 51% interest in the property from Northern Superior Resources Inc. Ontario has low political risk and, according to the annual Fraser Institute global survey of the mining industry, has consistently ranked as one of the top jurisdictions embracing mineral development.


Raymond W. Threlkeld, President & CEO


This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

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