SOURCE: Raytec Development Corp.

January 15, 2008 03:05 ET

Raytec Acquires Additional Large Tonnage Iron Ore Property

VANCOUVER, BC--(Marketwire - January 15, 2008) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) is pleased to announce that, subject to regulatory approval, it has signed an agreement to purchase a 100% interest in the TB3012585 group mineral claims, known as the Gunflint property, located in Jean Township, within the Thunder Bay Mining District, Ontario.

The Gunflint property consist of 16 claim units totalling approximately 640 acres, and is located in close proximity to both existing roads and the city of Thunder Bay, Ontario. Previous work on the property includes diamond drilling performed in the 1950s and 1960s, and more recently, surface sampling. Information provided to Raytec by the vendor includes reference to a report filed with the Ontario Department of Mines, Mineral Circular No. 11 on Iron Deposits of Ontario, authored by R.S. Shklanka, which references an estimated deposit of 270 million tons averaging 26.29% Fe (Iron). The same report also indicates samples from surface with 34.1% and 33.9% Fe.

It is important to note that these reports, being historic in nature, cannot be verified by the Company, do not comply with modern reporting standards (NI 43-101), and therefore should not be relied upon.

Terms of the acquisition include the payment to the vendors of $250,000 with $10,000 due upon signing, and the balance payable in equal instalments prior to January 1, 2012, and the issuance of 300,000 shares with 50,000 issuable on TSX Venture Exchange approval, and the balance payable in equal instalments prior to January 1, 2013. The agreement is subject to a 3% Net Smelter Royalty ("NSR"), of which 2% can be purchased from the vendor, leaving the vendor with a 1% NSR. A finders fee will be payable on this acquisition in accordance with TSX Venture Exchange policy.

"We are very excited about this project. Not only does this involve a large tonnage historic resource at a time of near record prices for Iron Ore, but it carries the added benefit of being very close to deep-water port facilities at Thunder Bay which should assist greatly in determining the economic viability of the project," according to Brian Thurston, Raytec President.

The Company intends to commence a work program as soon as possible in order to verify sample data, prepare for a winter/spring drill program, and to complete a NI43-101 compliant report.

On behalf of the Board,

RAYTEC METALS CORP.

Per:  Brian Thurston, President

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

Contact Information

  • Contact:
    RAYTEC METALS CORP.
    Suite 1130 - 789 West Pender Street
    Vancouver, BC, V6C 1H2
    Tel: (604) 669-9330
    Fax: (604) 669-9335