Primary Metals Inc.

Primary Metals Inc.

March 01, 2005 19:23 ET

Primary Metals Inc.: $270,000 Private Placement Proposed


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PRIMARY METALS INC.

TSX VENTURE SYMBOL: PMI

MARCH 1, 2005 - 19:23 ET

Primary Metals Inc.: $270,000 Private Placement
Proposed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2005) - Primary
Metals Inc. (TSX VENTURE:PMI)

NOT FOR DISSEMINATION IN THE USA.

Primary Metals Inc. ("Primary" or the "Company") announces that it has
agreed to sell on a non-brokered private placement basis to Almonty LLC
("Almonty"), a Delaware corporation, 1,200,000 units (the "Units") of
the Company at a price of $0.225 per Unit for gross proceeds of
$270,000. Each Unit is comprised of one common share of the Company and
one transferable share purchase warrant. Each warrant shall be
exercisable into one common share of the Company during a two-year
period at a price of $0.30 per share. The net proceeds of the private
placement will be used to provide funds for mining equipment and mine
development expenses at the Company's operating Panasqueira tungsten
mine in Portugal and to improve the working capital position of the
Company.

The Company announced on February 8, 2005 that Almonty had entered into
an agreement with Avocet Mining PLC ("Avocet") under which Almonty will
purchase a 49.09% equity interest in Primary from Avocet and will also
subscribe for 338,888 common shares at $0.18 per share, subject to
regulatory approval. The private placement of 1.2 million Units is in
addition to this subscription. All transactions are scheduled to occur
on or before March 25, 2005 and are subject to TSX Venture Exchange
approval.

The Company also announces the resignation of Bryce Porter as a
director. Mr. Porter has been closely involved with the Company's
activities since the acquisition of the Panasqueira mine and the Board
wishes to thank Mr. Porter for his advice and efforts which have
resulted in significant mine improvements during this period.

Primary Metals is listed on the TSX Venture Exchange under the symbol
"PMI". The Company holds the Panasqueira tungsten mine through its
wholly owned subsidiary, Beralt Tin & Wolfram (Portugal) S.A.
Panasqueira has a long history of production of high quality wolframite
concentrates and is a dominant producer of tungsten concentrates outside
China. Beralt holds a favourable long-term contract for the sale of all
its tungsten concentrate production. The price of tungsten has been
rising steadily recently and, together with operational improvements
initiated by management at the mine, has resulted in a significant
revenue increase for Primary. Introduction of new equipment is expected
to further improve operations, increase production and generate positive
cash flows and positive earnings.

On Behalf of the Board of Directors,

James Robertson, Director


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Primary Metals Inc.
    James Robertson
    Director
    (604) 669-8988
    (604) 669-2744 (FAX)
    info@primarymetals.ca
    www.primarymetals.ca
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or the accuracy of this release.