SOURCE: Raytec Development Corp.

January 29, 2008 03:05 ET

Raytec Acquires Potash Claims Adjacent to BHP-Anglo JV in Saskatchewan

VANCOUVER, BC--(Marketwire - January 29, 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 Exploration Permit Application KP441, located in Saskatchewan.

Exploration Permit Application KP441 covers an area of approximately 88,320 acres in central Saskatchewan, in an area of both highly prospective properties and producing potash mines, including Potash Corp's Cory Mine, located 20 km south of the property. Saskatchewan Ministry of Energy and Resources data indicates that the lands are underlain by both the Patience Lake and the Belle Plain potash members. Information obtained from the Saskatchewan Research Council by the vendor on two drill holes within the permit area, conducted by Canadian Exploration Ltd. in 1969, indicated intersections with both of the above noted potash members.

Currently there is no NI43-101 report on this property, nor are there proven, indicated or inferred resources. Readers are cautioned that the presence of the Patience Lake and the Belle Plain potash members in historic drill holes does not guarantee the presence of economic quantities of potash.

The Claim area:

Raytec's newly acquired claims lie immediately adjacent to claims currently held by a joint venture between BHP Billiton Diamonds Inc. and Anglo Minerals Ltd. In a recent news release (see Stockwatch January 10, 2008 for Anglo Minerals NR) Anglo Minerals reported on the success of their 2-D seismic program, including comments by Todd Montgomery, president of Anglo, wherein he states, "...After reviewing the seismic interpretation, the JV has increased its area of primary interest as the seismic data indicates that the potash resource may possibly be larger and more contiguous than originally thought..." In response to the success of this, Anglo and BHP announced initiation of a $16 million follow up 3-D seismic program (covering an estimated 419 square kilometers) and a subsequent drill program in early 2008.

Potash Outlook:

Although focused as an analysis of Potash Corp., a recent article (see RBC Capital analyst Fai Lee in the Financial Post article dated January 22, 2008) points out the strong demand for potash from South East Asia as a major catalyst in the continuing surge in prices paid for Potash. The article also references historic lows in both customer and distributor warehouse inventories.

"With numerous pieces of evidence pointing towards a strong market for potash moving forward, we felt very confident as a board to take on this project when the opportunity arose," comments Raytec President, Brian Thurston.

Terms of the acquisition with the arms-length vendor are as follows:

1) On acceptance by the TSX Venture Exchange - $50,000 AND 1,000,000 shares of the Company;

2) Commencing on the LATER OF; 30 days following issuance of the final Exploration Permit from the Saskatchewan Ministry of Energy and Resources; OR six months from the date of this agreement: $2,000,000 payable in stages over a period of 12 months AND the number of shares equivalent to $1,000,000 worth of the Company's stock, based upon the 15 day average closing price prior to issuance of those shares.

3) A 2% royalty in favour of the vendor, which may be purchased for the sum of $2,000,000.

In addition, the Company has granted incentive stock options to its directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 300,000 common shares of the Company for a period of 2 years at a price of $0.40 per share.

About Raytec:

Raytec is an integrated mineral exploration company that is developing Canadian mineral deposits to service the needs of a growing Asian economy. Brian Thurston, President, believes that by developing the company's iron ore properties in Ontario and now focusing on developing a potash project in Saskatchewan, Raytec is well positioned to meet the growing demand for potash and iron ore that exists in India, China and other growing Asian countries.

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

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

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