Raystar Capital Ltd.
TSX VENTURE : RYA.H

January 27, 2011 19:22 ET

Raystar Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2011) - Raystar Capital Ltd. ("Company") (TSX VENTURE:RYA.H) announces is has completed a non-brokered private placement ("Private Placement") of 7,000,000 units ("Units") priced at $0.07 per Unit for gross proceeds of $490,000. Each Unit consists of one common share ("Share") and one common share purchase warrant ("Warrant"), each Warrant entitles the holder to purchase a further Share at a price of $0.10 per Share for a period of one year from closing. The Shares and Warrants issued are subject to a four month hold period expiring May 28, 2011. Following the Private Placement, the Company will have approximately 19,857,040 Shares issued and outstanding. Proceeds from the Private Placement will be used for general working capital. There is no finder's fee associated with the Private Placement.

This news release is also being disseminated as required by National Instrument 62-103 The Early Warning system and Related Take Over Bids and Insider Reporting Issues in connection with the filing of early warning reports ("Early Warning Reports") regarding the acquisition of ownership and control of Units by the following purchasers ("Purchasers"):

Purchaser No. of Units Purchased
Lukas H Lundin, 2101 – 885 W. Georgia Street, Vancouver, British Columbia V6C 3E8 2,334,000
Douglas Forster, Suite 3244 – 1055 Dunsmuir Street, Vancouver, British Columbia V7X 1L3 2,333,000
Blayne Johnson, Suite 3244 – 1055 Dunsmuir Street, Vancouver, British Columbia V7X 1L3 2,333,000

The Units purchased by each Purchaser represent approximately 21% of the issued and outstanding Shares of the Company on a partially diluted basis, assuming exercise of only those Warrants held by each Purchaser.

The Purchasers acquired the Units in reliance on the exemption from the prospectus requirements contained in section 2.3 of National Instrument 45-106 Prospectus and Registration Exemptions.

The Purchasers acquired the Units for investment purposes only and may, from time to time, acquire additional securities of the Company, dispose of some or all of the existing or additional securities he holds or will hold, or may continue to hold his current position.

Copies of the Early Warning Reports may be found on www.SEDAR.com.

RAYSTAR CAPITAL LTD.

Edward Farrauto, Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Raystar Capital Ltd.
    Edward Farrauto
    Chief Executive Officer
    604-687-3992