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.
Stockhouse Conflict and Disclosure Policy:
Stockhouse publishing Ltd., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
