Raytec Metals Corp.
TSX VENTURE : RAY

Raytec Metals Corp.

June 12, 2008 03:05 ET

Raytec Announces $17,000,000 Private Placement Financing of Units and Flow-Through Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA U.S. NEWSWIRE SERVICES.

Raytec Metals Corp. (TSX VENTURE:RAY) (the Company) is pleased to announce a private placement with a syndicate of agents ("Agents") led by Canaccord Capital Corporation and including Integral Wealth Services Ltd. for an aggregate of 10,000,000 units ("Units") at a price of C$1.20 per Unit for proceeds of $12,000,000 and 3,571,500 flow-through common shares ("FT Shares") at a price of C$1.40 per FT Share for proceeds of approximately C$5,000,000 for aggregate gross proceeds of approximately C$17,000,000 (the "Offering"). A Unit will consist of one common share and one transferable common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to subscribe for one additional common share at a price of $1.60 for a period of two years from the date of closing.

In consideration for their efforts, the Agents will be paid a commission of 7% of the total proceeds raised in the Offering upon closing payable in cash. In addition, the Agents will receive agents' warrants ("Agents' Warrants") equal to 8% of the Offering. Each Agents' Warrant shall be exercisable into one common share of the Company for a period of two years from the date of closing at $1.60 per share.

The Company has also granted the Agents an overallotment option to solicit additional Units to raise additional gross proceeds of up to approximately $5,000,000 (4,166,700 Units) and additional FT Shares of up to approximately $3,000,000 (2,142,900 FT Shares) for aggregate additional gross proceeds of up to approximately $8,000,000 exercisable 48 hours prior to closing.

The funds raised from the issuance of the Flow-Through Shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE"). The funds raised from the issuance of the Units will be used for the advancement of the Company's mineral assets and for general working capital purposes.

On behalf of the Board,

RAYTEC METALS CORP.

Brian Thurston, President

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Raytec Metals Corp.
    Brian Thurston
    President
    (604) 669-9330
    (604) 669-9335 (FAX)
    Website: www.raytecmetals.com