Nuinsco Sells Royalty on Rainy River Project

Nuinsco Sells Royalty on Rainy River Project

Nuinsco Resources Limited announced that it has entered into an agreement with Rainy River Resources Ltd. pursuant to which the Company has sold its rights to a bonus payment and a royalty on certain claims that form the core of the Rainy River project in northwestern Ontario.

Under terms of an agreement signed in 2005, Nuinsco received the right to a royalty of $1.00 per ton (per 0.907 of a tonne) (adjusted annually for inflation) for each ton of mineral ore produced from the Claims (the “Royalty”), and the right to a one-time lump sum bonus payment of $2,500,000 payable by Rainy River if and when it commences commercial production (the “Bonus Payment”).

Under the agreement being announced today, the Company has sold its rights to the Royalty and the Bonus Payment for an aggregate one-time purchase price of $500,000 cash and 200,000 common shares in the capital of Rainy River at a deemed issue price of $0.65 per share.

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