SOURCE: Raytec Development Corp.

September 17, 2007 00:01 ET

Raytec Update

VANCOUVER, BC--(Marketwire - September 17, 2007) - Raytec Development Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) is pleased to announce that it has received the conditional approval of the TSX Venture Exchange for its Change of Business transaction ("COB").

The Company held its Annual General and Special Meeting on July 31, 2007, at which all resolutions put to shareholders were passed. The resolutions included the appointment and remuneration of the Company's auditor, the election of directors, the adoption of a 2007 stock option plan, and approval of the COB and concurrent change of name. The Company intends to change its name to "Raytec Metals Corp." subject to Exchange approval.

The Exchange has advised the Company that its final acceptance to the COB is subject to certain criteria, including closing of a brokered private placement of a minimum of $900,000.

The Company advises that it has closed the first tranche of its non-brokered private placement of 1,394,636 units at $0.55 per unit, for total gross proceeds of $767,050. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into an additional common share for a period of two years at a price of $0.85 per share.

The Company paid cash finder's fees in the amount of $2,068 to Dave Heyman, $8,360 to Ian Fuller, $880 to Rider Capital, and $25,460 to Lockwood Financial Group.

All securities issued under the placement are subject to a hold period expiring on January 13, 2008. Proceeds from the placement will be used for exploration work on the Saskatchewan uranium properties and for general working capital.

Raytec's East Athabasca Uranium project is located in northern Saskatchewan within the East Athabasca uranium belt which hosts several of the world's largest uranium deposits. Raytec's properties occur within a linear zone approximately 180km long by 40km wide, which contains mines responsible for approximately 30% of the global uranium production. The Raytec property consists of 11 blocks totalling 50,090 hectares, spread out along 140 km within and peripheral to the belt of known deposits.

Raytec conducted a VTEM airborne geophysical survey over all claims in the property in 2006, and identified numerous prominent conductors. A program of ground geophysics is planned to better define these conductors, and drill testing will follow. An NI43-101 report has been prepared on a portion of the overall claim group, and is available on SEDAR.

The Company also announces that Mr. Michael Sandidge has resigned from the board of directors.

On behalf of the Board,
RAYTEC DEVELOPMENT CORP.

Per: _______________________
     Casey Forward, Director

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Contact Information

  • Contact:

    RAYTEC DEVELOPMENT CORP.
    #200 -551 Howe Street, Vancouver, BC V6C 2C2
    Tel: (604) 683-8610
    Fax: (604) 683-4499