SOURCE: Raytec Metals Corp.

April 18, 2008 13:36 ET

Raytec Closes Final Tranche of Financing

VANCOUVER, BC--(Marketwire - April 18, 2008) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) (PINKSHEETS: RAYMF) is pleased to announce that it has closed the second and final tranche of its financing, initially announced on February 13, 2008. For the second tranche, the Company received gross proceeds of $581,500 in consideration of the issuance of 1,292,222 units at a price of $0.45 per unit. Each unit consists of one common share and one-half of one non-transferable share purchase warrant, each whole warrant exercisable into one additional common share at a price of $0.75 per share until April 11, 2010.

The Company paid/issued the following finders' fees in respect of the placement:

Integral Wealth Securities Limited received a cash payment of $2,700 and a share purchase warrant authorizing it to purchase up to 6,000 common shares of the Company at a price of $0.45 per share until April 11, 2010.

Canaccord Capital Corporation received a cash payment of $16,740 and a share purchase warrant authorizing it to purchase up to 37,200 common shares of the Company at a price of $0.45 per share until April 11, 2010.

314 Finance Corp. received a cash payment of $8,100 and a share purchase warrant authorizing it to purchase up to 18,000 common shares of the Company at a price of $0.45 per share until April 11, 2010.

All the share purchase warrants issued under the placement contain a provision which provides that if after August 12, 2008, until the expiry date of the warrants, the closing price of the Company's shares exceeds $1.25 for 10 consecutive trading days, the Company may accelerate the expiry date of the warrants to the date that is 30 days after the day the notice of the new expiry date is provided to the holders of the warrants.

All securities issued under the placement are subject to hold periods expiring on August 12, 2008.

Prior to the closing of the first tranche of the financing, the Company entered into a loan agreement with an arm's length party whereby the lender advanced a total $165,000 to the Company, at an interest rate of 10% per annum. In consideration of the loan, the Company has agreed to issue to the lender bonus shares pursuant to the policies of the TSX Venture Exchange. The principal and interest have been repaid to the lender out of the proceeds of the financing. The bonus shares shall be paid upon approval of the TSX Venture Exchange.

On behalf of the Board,
RAYTEC METALS CORP.

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:

    Brian Thurston
    President
    (604) 669-9330