Raytec acquires new potash claims

Vancouver-Raytec Metals Corp., an upstart potash company, said Feb. 11 that it has signed an agreement to purchase a 100 percent interest in Exploration Permit Application Area (“EPAA”) KP452, located in Saskatchewan. EPAA KP452 covers an area of approximately 92,160 acres in south-central Saskatchewan. The newly acquired EPAA is in the south-eastern portion of the evaporite formation, located approximately 380 kilometers southeast of the company’s EPAA KP441. The new EPAA lies approximately 42 kilometers southwest of the Mosaic Co. – Compass Mineral Group’s K-1 and K-2 Potash-Salt Mines, and 53 kilometers west of Potash Corp. of Saskatchewan’s Rocanville Potash-Salt Mine. Raytec says it now has a total of 290,880 acres of prospective potash ground under permit application within the extensive Middle Devonian Prairie Evaporite formation of south-central Saskatchewan. It says Saskatchewan Ministry of Energy and Resources data indicates that EPAA KP452 is underlain by both the Belle Plain and the Esterhazy potash members. Exploratory drilling has been conducted on the newly acquired ground in the past. This historic information will be reported once the company has reviewed all pertinent data. It says that currently there is no NI43-101 report on this property, nor are there proven, indicated, or inferred resources. Raytec adds that the presence of the Belle Plain and the Esterhazy potash members does not guarantee the presence of economic quantities of potash. Terms of the acquisition with the arms-length vendor are as follows: 1) On acceptance by the TSX Venture Exchange ?Çô $150,000 cash, 275,000 common shares of the company, and 275,000 share purchase warrants, which may be converted to common shares of the company for a period of 12 months following TSX Venture Exchange approval at a price of $1.00 per share; 2) Six months after receiving acceptance by the TSX Venture Exchange – $150,000 cash, 250,000 common shares of the company, and 250,000 purchase warrants, which may be converted to common shares of the company for a period of 18 months following TSX Venture Exchange approval at a price of $1.00 per share; 3) After issuance of the final Exploration Permit from the Saskatchewan Ministry of Energy and Resources – 250,000 common shares of the company.