Raytec reports on potash reserves, raises money

Vancouver-Raytec Metals Corp. on June 10 announced a summary of the resource calculations from its KP441 Potash Disposition Application, located in south central Saskatchewan. KP441 is the company’s first potash acquisition within the Saskatchewan potash basin, and accounts for 88,320 acres of the company’s total land package of 291,330 acres under application. The report estimates a total indicated resource of 148.02 million mt grading 23.44 percent K₂O, and an additional inferred resource of 229.16 million mt grading 20.40 percent K₂O. “We are very pleased with the results of our current resource estimate,” said Raytec President Brian Thurston. “We believe this shows that Raytec has some very prospective potash ground in Saskatchewan. Our goal is to expand our current resources through seismic exploration and drilling of the property. Through my recent conversations with personnel at the Saskatchewan Government Mines Branch, I expect to have our permit for KP441 issued in July.” In other news, on June 12 Raytec announced a private placement with a syndicate of agents – led by Canaccord Capital Corp., and including Integral Wealth Services Ltd. – for an aggregate of 10,000,000 units at a price of C$1.20 per unit for proceeds of $12,000,000, and 3,571,500 flow-through common 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. A unit will consist of one common share and one transferable common share purchase 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. The funds raised from the issuance of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian Exploration Expenditures. 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.