Raytec Metals switches focus to oil and gas exploration and production.

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Halkaan ka akhri

Raytec Metals Corp. (TSX-V: RAY) is in need of a name change.  Originally focused on potash exploration and more recently stating that it was eyeing up precious metals projects, the junior mining company stunned investors yesterday afternoon when it announced that it had signed a letter of intent with Africa Oil Corp (TSX-V: AOI) for entry into the production sharing contracts in the State of Puntland, Somalia and Kenya. Africa Oil is a member of the Lundin Group.

In Puntland, Somalia, Africa Oil will transfer a 25% license interest to Raytec Metals in the Nogal and Dharoor Petroleum Production Sharing Agreements. The Nogal and Dharoor blocks include two hydrocarbon basins and cover an area of 81,000 square kilometres. The Nogal and Dharoor basins are believed to host a petroleum system geologically similar to those in the Republic of Yemen.

The remaining 50% interest in the Nogal and Dharoor blocks are held by ASX listed Range Resources, which has been the subject of intense media and shareholder speculation ever since it originally announced that it had been awarded the rights to explore for all mineral and hydrocarbon prospects onshore and offshore Puntland. Puntland is located on the north-eastern tip of Somalia.  Africa Oil and Range Resources have been hampered in their attempts to drill in Puntland due to the unpredictable security situation and pirate activity off the coast of Somalia.

In Kenya, Africa Oil will transfer a 10% interest in the Block 9 Production Sharing Agreement and a 25% license interest in its other interests in Kenya, which include over 10 million acres in the Anza Basin.
Brian Thurston, President of Raytec, commented, “I am pleased to announce this strategic transaction and welcome the opportunity to partner with one of the most respected names in the resource industry.

The Lundin Group has been directly involved in the discovery and development of several major oil fields which has resulted in the creation of enormous value for their shareholders. The Lundin Group of Companies currently operates in over thirty different countries worldwide in the oil and gas sector as well as the mining sector. The Group has been highly commended by local communities and governments over the years for their efforts in developing a set of protocols that ensure issues of environmental and cultural concern are addressed as well as economic benefits and employment opportunities.”

Raytec further announced that it would raise up to C$3 million in a private placement of 10 million units at 30 cents per unit. Each unit will consist of one share and one two year warrant with 50 cent exercise price.

Source: All companies

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