November 3, 2008
Raytec Acquires Position in Sulphur Fertilizer Company
Raytec Metals Corp. (the "Company") (TSX VENTURE: RAY) announces that it has acquired 15 per-cent (15%) of the issued and outstanding Common Shares in Sulphur Solutions Inc. ("SSI"), a privately held company based in Calgary, Alberta. As reported in a press release on June 11th, 2008, Raytec negotiated the right to acquire 15% of SSI by making staged payments totaling $1.5-million upon SSI achieving specific technical milestones, which SSI has met. The agreement with SSI further provides Raytec with a right of first refusal to participate in future SSI financings.
SSI is an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur from a variety of sulphur sources. The micronized sulphur is processed into a premium fertilizer product branded as Rapid Release. Rapid Release has been designed to be highly dispersible into an optimum particle size for effective time-release sulphate production throughout the season of application. Rapid Release is designed to address general soil sulphur deficiencies and improve nutrient plant availability.SSI is advancing closer to a production decision and plans to introduce multiple sulphur processing and fertilizer production plants as early as 2009. The facilities are expected to be located at sulphur production sites to take advantage of existing permits for sulphur storage and handling, as well as reduced operating costs associated with transportation to off-site processing facilities.
Richard Knoll, SSI's President, has been working with sulphur for the past 10 years and believes that the continuous increasing global demand for food, fibre and various other agricultural commodities is not sustainable without replenishment of plant nutrients in a reasonably balanced manner. "That includes sulphur," says Mr. Knoll. Coinciding with Raytec's investment into SSI, Mr. Knoll joined Raytec's Board of Directors.
Jim Beaton, one of Raytec's agronomic advisers and former President of the Potash and Phosphate Institute of Canada, and former Director of Agricultural Research for the Sulphur Institute states, "Fortunately, the need for and implementation of balanced fertilization has received much greater attention in recent years. The balance between nitrogen and sulphur is particularly important since the full benefit of one is dependent upon an ample supply of the other."
Based on world-wide nitrogen demand alone, SSI believes there is ample market for a sulphur product like Rapid Release. The fertilizer industry forecast of world demand for fertilizer nitrogen in 2008 is 102-million tonnes with an estimated increase to 107-million tonnes by 2011. Assuming that a nitrogen-to-sulphur ratio of 12:1 is required by most crops, the global fertilizer sulphur requirement in 2008 is estimated to be 8.5-million tonnes, increasing to 8.9-million tonnes by 2011.
Raytec's President, Mr. Brian Thurston states, "The strategic investment into SSI by Raytec, coupled with the Company's NI43-101 potash resources, has positioned Raytec to take advantage of a growing fertilizer market. Raytec now has an interest in two of the four main fertilizer elements nitrogen, phosphorus, potassium, and sulphur. We are extremely pleased with the progress made to date by the SSI team and look forward to the possibility of increasing our involvement in SSI in the near future."
Raytec Metals Corp. is a dynamic Canadian exploration Company focused on the exploration and commercialization of potash in Saskatchewan, Canada - the largest producing region for potash in the world. The Company's potash claims are located near two world-class potash mines that have been in production since the 1960s and are also directly positioned adjacent to claims held by BHP Billiton. The Company also holds iron ore projects in Ontario and uranium joint venture projects in the Athabasca Basin of Saskatchewan.
On behalf of the Board,
RAYTEC METALS CORP.
Brian Thurston, President
Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: Raytec Metals Corp. Brian Thurston President (604) 669-9330 (604) 669-9335 (FAX) Website: www.raytecmetals.com
SOURCE: Raytec Metals Corp.