Primary Corp.
TSX VENTURE : PYC

Primary Corp.

October 19, 2009 17:37 ET

Primary Corp. Sells Its 50% Interest in the Grant-Uranium Joint Venture

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. 

Primary Corp. (TSX VENTURE:PYC) ("Primary") is pleased to announce that it has entered into a purchase and termination agreement (the "Termination Agreement") with Neutron Energy, Inc. ("Neutron"), pursuant to which Neutron will purchase from Primary all of its 50 per cent interest in the Grant-Uranium joint venture relating to the Ambrosia Lake Uranium project located in New Mexico, and Primary and Neutron will terminate the related joint venture agreement with respect of the project.

In consideration for Primary's 50 per cent interest in the Grant-Uranium joint venture and the termination of the joint venture agreement, Neutron has agreed to pay to Primary, on or before December 15, 2009, at Neutron's option, either (i) C$3,519,067 in cash, or (ii) 3,519,067 common shares of Neutron.

Primary currently holds 10,750,000 shares of Neutron. If Neutron elects to pay by issuing common shares, Primary would own 21.7% of the outstanding shares of Neutron on a fully diluted basis.

As a result of the transaction, Neutron will hold a 100 per cent interest in the Ambrosia Lake Uranium project in addition to several other uranium projects.

About Primary Corp.

Primary Corp is a diversified venture capital and merchant banking firm focused on the small cap market. It seeks to make equity investments and bridge loans in appropriate companies. Primary is listed on the TSX Venture Exchange under the trading symbol: "PYC".

About Neutron Energy, Inc.

Neutron Energy, Inc. is a privately held corporation with advanced uranium exploration and development properties located in New Mexico, Wyoming, South Dakota, Arizona and Utah. Neutron is engaged in permitting multiple mines and a mill complex on properties previously in production or fully permitted to be in production in New Mexico.

Forward Looking Statements: This news release contains certain information that may constitute forward-looking statements under applicable securities laws. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Primary at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the results anticipated or implied herein and variations may be material. There is no representation by Primary that actual results achieved will be the same in whole or in part as those implied in any forward looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Primary Corp.
    Rob Pollock
    President and Chief Executive Officer
    (416) 214-9672