SOURCE: Raytec Development Corp.

October 17, 2007 03:01 ET

Raytec Arranges Financing With MineralFields Group

VANCOUVER, BC--(Marketwire - October 17, 2007) - Raytec Development Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) is pleased to announce that it has arranged, subject to the approval of the TSX Venture Exchange, a private placement with MineralFields Group. The placement will consist of 1,818,181 units of the Company at $0.55 per unit for total gross proceeds of $1,000,000. Each unit will consist of one flow-through common share and one non-transferable share purchase warrant exercisable for a period of two years into one non flow-through common share at a price of $0.85 per share.

As a finder's fee, the Company will pay Limited Market Dealer Inc. ("LMD") a $50,000 cash commission and a due diligence fee of $40,000. LMD will also receive a non-transferable share purchase warrant authorizing it to purchase up to 163,636 common shares of the Company for a period of two years at a price of $0.55 per share.

The proceeds of the placement will be used for Canadian exploration expenses incurred by the Company.

Funds from this private placement, together with those funds raised in the non-brokered private placement announced September 17, 2007, cumulatively total $1,767,050 raised to date. The balance of funds required for final approval of the Company's Change of Business from the TSX Venture Exchange will be raised through the brokered private placement with Canaccord Capital Corporation, which is anticipated to close within the next few weeks.

As outlined in our news release of April 20, 2007, the Company has arranged, subject to TSX Venture Exchange approval, a brokered private placement with Canaccord Capital Corporation whereby Canaccord will place with its clients up to 1,454,545 units of the Company at a price of $0.55 per unit for total gross proceeds of up to $800,000. Each unit will consist of one common share of the Company and one non-transferable share purchase warrant authorizing the holder to purchase one additional common share of the Company for a period of two years at a price of $0.85 per share.

As a commission, Canaccord will receive cash or units or a combination thereof equal to 9% of the funds raised by it, the units having the same terms as those under the placement. Canaccord will also receive a non-transferable share purchase warrant authorizing it to purchase the number of shares equal to 9% of those sold by it under the placement, for a period of two years at a price of $0.55 per share.

All of the securities issued pursuant to these offerings will have hold periods expiring four months after the closing date.

About MineralFields, Pathway and First Canadian Securities®: MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.

About Raytec: Raytec Development Corp. is a Canadian-based mineral exploration and development company with current properties in the Key Lake area of the Athabasca Basin, Saskatchewan, Canada. The company is seeking to develop their Key Lake uranium property, and is aggressively seeking other opportunities in similarly high-profile areas for energy related commodities, precious and base metal projects.

On behalf of the Board,

RAYTEC DEVELOPMENT CORP.

"Casey Forward"
CFO

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Cautionary note: This report may contain forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Key Lake properties. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

  • RAYTEC DEVELOPMENT CORP.
    #200-551 Howe Street
    Vancouver, BC V6C 2C2
    Tel: (604) 683-8610
    Fax: (604) 683-4499
    info@raytecdevelopment.com