Nuinsco Resources sells project rights to Rainy River Resources.
Nuinsco Resources (TSX: T.NWI, Stock Forum) and Rainy River Resources (TSX: V.RR, Stock Forum) announced Monday that they have entered into an agreement for Nuinsco to sell its rights to a bonus payment and a royalty on certain claims at the Rainy River project in northwestern Ontario.
Under terms of the 2005 agreement, Nuinsco received the right to a royalty of $1.00 per ton for each ton of mineral ore produced from the claims and the right to a one-time lump sum bonus payment of $2.5 million payable by Rainy River if and when commercial production starts.
Under the most recent agreement, Nuinsco has sold its rights to the royalty and bonus payment for $500,000 cash and 200,000 common shares in the capital of RainyRiver at 65 cents per share.
Shares of Nuinsco closed down 12.5% to 3.5 cents Friday, while Rainy River Resources climbed 7.7% to 70 cents.
On the weekend, Stockhouse member Wirtz provided some comments on Rainy River Resources, saying:
My understanding is that RR has significant gold resources, however, will require prudent development leadership. At the moment, I am also focused on juniors with near surface gold ounces that can get to market in short order, i.e. trucking distance to area gold plant. In the shorter run, perhaps RainyRiver needs to utilize a portion of its cash position and target near surface gold projects with previous development work. The Wellington West mining analyst was once very confident about RR ($5.00 per share range). Perhaps she has a few suggestions for RR management going forward.
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