Business
Nuinsco announces completing the sale of its Rainy River property to Rainy River Resources
Nuinsco announces completing the sale of its Rainy River property to Rainy River Resources.
About this update from Nuinsco Resources Limited
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 29 /CNW/ - Nuinsco Resources Limited (TSX: NWI) announces\ntoday the closure of the sale of its Rainy River property to Rainy River\nResources (TSX-V:RR), in what is anticipated by each company to be a mutually\nprofitable arrangement. The sale agreement replaces the letter agreement\nbetween Nuinsco and 608457 B.C. Ltd. respecting the purchase and sale of the\nRainy River property, which agreement was assigned by 608457 B.C. Ltd. to\nCollingwood Capital Corp. and subsequently to Rainy River Resources.\nNuinsco will receive total cash payments of $2.5 million in addition to a\nbonus of $2.5 million on commencement of commercial production or direct\nshipment of ore from the property. $750,000 of the cash payments to date has\nbeen paid by 608457 B.C. Ltd., with Rainy River Resources to deliver the \n$1.75 million balance in seven equal quarterly installments of $250,000 each.\nRainy River Resources will also pay Nuinsco a quarterly royalty of $1.00\nper ton of ore produced from the property, subject to an annual Consumer Price\nIndex adjustment, and will issue to Nuinsco on closing a total of 2,197,380\ncommon shares of Rainy River Resources. On June 27, 2005, Rainy River\nResources closed at $0.80 Cdn.\nIf Rainy River Resources proposes to issue any additional securities in\norder to finance the continued development of the Rainy River property,\nNuinsco shall have the preemptive right to participate in such financing, to a\nmaximum of 7 per cent thereof for a term of five years. As security for\npayment of the purchase price, Rainy River Resources will grant to Nuinsco a\nfirst mortgage and general security interest over the interest it acquires in\nthe Rainy River property and all related assets.\n\nFORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all\nstatements in this news release - including, without limitation, statements\nregarding future plans and objectives of are forward-looking statements that\ninvolve various risks and uncertainties. There can be no assurance that such\nstatements will prove to be accurate; actual results and future events could\ndiffer materially from those anticipated in such statements.\n%SEDAR: 00001232E\n\n\n","length":2265,"tagName":"div"}]