Rainy River arranges $8-million flow-through financing

2009-10-07 09:40 ET - News Release

Mr. Raymond Threlkeld reports

RAINY RIVER ANNOUNCES FLOW-THROUGH SHARE FINANCING

Rainy River Resources Ltd. has entered into an agreement for an offering, on a best efforts basis and through a syndicate of agents led by Wellington West Capital Markets Inc., of 2.84 million flow-through common shares of Rainy River at a price of $2.82 per flow-through share for aggregate gross proceeds of $8,008,800. All sales of flow-through shares will be made on a private placement basis pursuant to exemptions from the prospectus requirements of applicable securities laws.

Closing is anticipated to occur on or about Oct. 28, 2009, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The flow-through shares will be subject to a four-month hold period in Canada.

Gross proceeds from the sale of the flow-through shares will be used to finance continuing exploration activities on the company's Rainy River project, which expenses are eligible for Canadian exploration expenses for tax purposes and will be renounced in favour of the subscribers for the flow-through shares effective on or before Dec. 31, 2009.