SOURCE: Raytec Development Corp.

November 16, 2007 18:37 ET

Raytec Completes Change of Business

VANCOUVER, BC--(Marketwire - November 16, 2007) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) is pleased to announce that it has completed its change of business ("COB") initially announced on April 20, 2007. In connection with the COB, the Company changed its name to Raytec Metals Corp. effective at the opening on November 19, 2007. The Company is now a Tier 2 mining issuer listed on the TSX Venture Exchange under the symbol RAY.

The Company entered into an agreement dated April 11, 2007, to acquire 100% of the issued and outstanding shares of Aurex Copper Mines Corp. ("Aurex"). Aurex is a private British Columbia company that has as its primary asset an option to acquire 17 uranium properties in the eastern Athabasca basin of Saskatchewan from North-Sask, Ventures Ltd. (the "Vendor"). As part of the transaction, Aurex has assigned all rights to the uranium properties to the Company and the Company will be responsible for maintenance and upkeep of the option agreements.

To acquire Aurex, the Company issued one common share in its capital for each outstanding common share of Aurex, for a total of 3,962,801 common shares of the Company.

To exercise the option to acquire the uranium properties, the Company has issued 1,500,000 common shares to the Vendor. The Company must also:

--  make property payments totalling $275,000 over the next three years to
    the Vendor, and
--  incur $1 million in expenditures on the properties before March 1,
    2008, $1 million in expenditures on the properties before December 1, 2008
    and December 1, 2009, for a total of $3 million, of which $580,000 has
    already been expended.
    

About Aurex and the properties

The properties optioned by Aurex, totalling 50,159 hectares in area, include 2 parcels of 7 claims each totalling 31,762 hectares located along the southern margin of the Athabasca Basin. One parcel is situated from 17 to 47 km west, with the other lying from 5 to 26 km southeast of the Key Lake Uranium mine and mill, where historical production from 2 mined-out unconformity type uranium deposits once contributed 15% of world uranium production (reference Natural Resources Canada). An additional 3982 hectares are located within the same basin, within or proximal to the Key Lake - McArthur River and Cigar Lake geological trend. The claims are situated within or near the Athabasca Basin margin, underlain by rocks of the Wollaston Domain, which is the favourable geological setting hosting most of the major deposits in the eastern portion of the basin.

The Company also advises that it has closed its non-brokered private placement of 579,954 flow-through units at $0.55 per unit for total gross proceeds of $318,975 and 194,545 non flow-through units at $0.55 per unit for total gross proceeds of $107,000. Each flow-through unit consists of one flow-through common share and one transferable share purchase warrant, each warrant exercisable into one non flow-through common share for a period of two years at a price of $0.85 per share. Each non flow-through unit consists of one non flow-through common share and one transferable share purchase warrant, each warrant exercisable into one additional non flow-through common share for a period of two years at a price of $0.85 per share. The Company paid a cash finder's fees in the amount $7,460 to Ian Fuller.

All securities issued under the placement are subject to hold periods expiring on March 15, 2008. Proceeds from the placement will be used for Canadian exploration work and for general working capital.

On behalf of the Board,

RAYTEC METALS CORP.

Casey Forward, CFO

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