Rainy River arranges $75-million bought-deal offering

2012-11-13 16:30 ET - News Release

Mr. Raymond Threlkeld reports

RAINY RIVER ANNOUNCES $75 MILLION BOUGHT DEAL FINANCING

Rainy River Resources Ltd. has entered into an agreement with National Bank Financial Inc. and BMO Capital Markets as co-lead underwriters on behalf of a syndicate of underwriters to be formed, for the issuance of 13.17 million common shares of the company, on a bought-deal basis, at a price of $5.70 per share, for gross proceeds of $75,069,000.

The company will also grant to the underwriters an option, exercisable at any time until 5 p.m. on the 30th day following the closing, to purchase up to an additional 1,975,500 shares at the offering price.

The company intends to use the net proceeds from the offering to finance continuing development and exploration activities at its namesake Rainy River gold project, and for general corporate purposes.

The shares will be offered by way of a short-form prospectus to be filed in all of the provinces of Canada, other than Quebec, pursuant to National Instrument 44-101 Short Form Prospectus Distributions.

The offering is scheduled to close on or about Dec. 3, 2012, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

We seek Safe Harbor