VANCOUVER, BRITISH COLUMBIA, Dec 29, 2008 (MARKET WIRE via COMTEX News Network) --
Raytec Metals Corp. (the "Company") (TSX VENTURE: RAY) reports that its Board of Directors has implemented a Shareholder Rights Plan Agreement (the "Rights Plan").
The Rights Plan has been adopted by the Board of Directors to ensure the fair treatment of shareholders in connection with any take-over offer for the Corporation, and to provide the Board of Directors and shareholders with additional time to fully consider any unsolicited take-over bid. The Rights Plan will also provide the Board of Directors more time to pursue, if appropriate, other alternatives to maximize shareholder value. The Rights Plan is not designed to prevent takeover bids that treat Raytec shareholders fairly.
Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders is deemed to be a permitted bid. A permitted bid must be made by way of a takeover bid circular prepared in compliance with applicable securities laws and, in addition to certain other conditions, must remain open for 75 days. In the event a takeover bid does not meet the permitted bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the takeover bid, to purchase additional common shares of Raytec at a significant discount to the market price of the common shares at that time.
The Rights Plan was not adopted in response to, or in anticipation of, any specific takeover bid or proposal to acquire control of the Company, and is subject to acceptance by the TSX.V.
Raytec Metals Corp. is a well-financed, dynamic Canadian exploration company focused on the exploration and commercialization of over 180,000 acres of potash permits in Saskatchewan, Canada - the largest producing region for potash in the world. The Company holds a 15 per cent 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 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 and CEO
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 TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: Raytec Metals Corp. Brian Thurston President and CEO (604) 688-6410 (604) 688-6402 (FAX) Website: www.raytecmetals.com
SOURCE: Raytec Metals Corp.