VANCOUVER, Aug. 24 /CNW/ - Raytec Metals Corp. (the "Company" or
"Raytec") (TSX.V - RAY) is pleased to announce that it has closed its
previously announced transactions with Encanto Potash Corp. ("Encanto").
Raytec has transferred all of its interests in its potash properties in
Saskatchewan to Encanto's operating subsidiary in exchange for 19,846,525
common shares of Encanto, at a deemed total value of $0.25 per share
($4,961,631 in total). As a result, Raytec now owns 19,846,525 common shares
of Encanto representing approximately 14.76% of the common shares of Encanto.
Raytec has acquired the common shares of Encanto for investment purposes.
Raytec will also incur $6,500,000 in expenditures on Encanto's existing
potash properties and Raytec's potash properties (collectively, the "Potash
Properties") by December 31, 2009, to earn a 51% interest in the Potash
Properties. Encanto will have the option to repurchase the 51% Raytec interest
in the Potash Properties for 26,000,000 common shares of Encanto. If this
option is exercised, Raytec will own an aggregate of up to 45,846,525 shares
of Encanto which will be equal to an estimated 28.57% of Encanto's issued
shares based on its current issued share capital.
The Company will file a report describing the above transactions with
applicable securities regulators, a copy of which will be available under the
Company's profile at www.sedar.com. For further information, or to obtain a
copy of the early warning report, please contact Brian Thurston, President and
Chief Executive Officer (Tel: (604) 688-6410).
Raytec Metals Corp. is a well-financed, Canadian exploration company with
recently signed agreements with Africa Oil Corp. The Company holds an
approximately 20% interest in Sulphur Solutions Inc., an emerging fertilizer
company developing state-of-the-art patented technology for the production of
micronized sulphur fertilizer. The Company is further diversified with a
uranium joint venture project in the Athabasca Basin of Saskatchewan and an
iron ore project in Ontario.
On behalf of the Board,
RAYTEC METALS CORP.
President and CEO
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address exploration drilling, exploration
activities, expenditures and events or developments that the Company expects
to occur, are forward-looking statements. Forward-looking statements in this
news release include statements regarding the transaction, expenditures to be
incurred, shares to be issued and interests to be transferred there under, and
any future exploration plans and expenditures. Although, the Company believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploration and exploration successes, and continued availability of
capital and financing and general economic, market or business conditions.
These statements are based on a number of assumptions, including among others,
assumptions regarding general business and economic conditions, the timing and
receipt of regulatory and governmental approvals for the transactions
described herein, the ability of the Company and other parties to satisfy
Exchange and other regulatory requirements in a timely manner, the
availability of financing for the Company's proposed transactions and programs
on reasonable terms, and the ability of third-party service providers to
deliver services in a timely manner. Investors are cautioned that any such
statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward-looking
statements. The Company does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: To find out more about Raytec Metals Corp.,
please visit the Company's website at www.raytecmetals.com or review the
documents filed on www.sedar.com