Primary Energy Metals Inc. (formerly, Primary Cobalt Corp.) (CSE-PRIM) (“Primary” or the “Company”) is pleased to announce it has signed an arm’s length acquisition agreement (“ALA”) with its US subsidiary Primary Nirvana Inc. (“PNI”) and Green Energy Minerals Limited, (“GEM”) to acquire a 100% interest in 199 unpatented lode claims in the Polar Mesa area of Utah (“The Nirvana I Project”).
Primary Energy Metals Inc. (formerly, Primary Cobalt Corp.) (CSE:PRIM) (“Primary” or the “Company”) is pleased to announce it has signed an arm’s length acquisition agreement (“ALA”) with its US subsidiary Primary Nirvana Inc. (“PNI”) and Green Energy Minerals Limited, (“GEM”) to acquire a 100% interest in 199 unpatented lode claims in the Polar Mesa area of Utah (“The Nirvana I Project”).
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Subject to CSE and regulatory approval, in consideration for the Project, Primary will pay US$180,000 to cover staking fees, county and Bureau of Land Management (“BLM”) payments and will issue 10,000,000 common shares.
“The Nirvana I Project” – Polar Mesa claims form a single contiguous claim block covered by 199 unpatented federal lode claims in Uravan Belt, with historic mining going back to the 1880’s.
There are several areas with vanadium grades of 3.87%, 3.37%, 3.35% 3.26%, 3.04% and 3.02%, with surface chip samples reporting vanadium grades as high as 5.63% and uranium grades of 2,100 ppm. The grab samples are selected samples and may not be representative of the mineralization hosted on the property.
The Uravan Mineral Belt has been explored since the late 1880s, when early prospectors discovered radium, vanadium and uranium in the carnotite ores of the Paradox Valley. Since then, these three elements have alternated as the predominant economic resource based upon the market conditions.
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Prior to 1930, most of the vanadium produced in the United States came from the roscoelite deposits near Rifle and Placerville in Colorado. The rising demand for vanadium as a steel alloy renewed interest in the vanadium deposits of the Uravan Belt.
Summary of Report from the Office of the Secretary, Interior May 18, 2018 on Critical Minerals
The United States is heavily reliant on imports of certain mineral commodities that are vital to the Nation’s security and economic prosperity. This dependency of the United States on foreign sources creates a strategic vulnerability for both its economy and military to adverse foreign government action, natural disaster, and other events that can disrupt supply of these key minerals. Pursuant to Executive Order 13817 of December 20, 2017, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals,” the Secretary of the Interior on February 16, 2018, presented a draft list of 35 mineral commodities deemed critical under the definition provided in the Executive Order. After considering the 453 public comments received, the Department of the Interior believes that the methodology used to draft the list remains valid and hereby finalizes the draft list of 35 critical minerals. The final list includes: uranium, and vanadium.
Patrick Morris, CEO of Primary commented: “We are pleased with this major step forward for the group to advance next step in accelerating both our short and long-term goals to expand our search for worldwide battery mineral assets. With our recent agreement to acquire up to an 85% interest in energy minerals in Spain, we see strong growth potential for Primary that will provide a major upside for our investors.”
“Vanadium has outperformed other battery metals like lithium and cobalt over the last year, gaining over 130 percent. Tightening supply and strong demand from the steel industry, the top consumer of the metal, has caused prices to rally,” according to Bloomberg.
Metal Bulletin notes “that Chinese vanadium pentoxide prices have risen to about $13 per pound, up from around $9 at the start of December 2017. Demand has risen on new regulations that have increased the amount of vanadium required in steel rebar. The added vanadium content is intended to strengthen buildings in areas prone to earthquakes. The Chinese government has also banned the import of four types of metal containing vanadium slag, adding to concerns about domestic supply.
Speculation that vanadium redox flow batteries (VRFBs) could become an important part of the energy storage mix has also stoked optimism about vanadium. These batteries are used mainly for grid-storage applications, but Bloomberg quotes one expert who says they are emerging as a competitor to lithium-ion batteries in China.
New research from ASDReports estimates that the market for flow batteries will grow from $230.2 million in 2018 to $946.3 million by 2023, at a CAGR of 32.7 percent during the forecast period.
The research firm attributes the growth of this market to increasing investment in renewable energy. It notes that VRFBs held the largest share of the flow battery market in 2017, and are currently the most widely commercialized flow battery.”
ASDReports also says that redox flow batteries are an “economical and convenient means to store electrical energy at grid scale and other applications. Redox flow batteries also offer greater flexibility to influence power rating and energy rating for a given application than other electrochemical means for storing electrical energy.”
The technical information contained in this news release has been reviewed and approved by Bradley C. Peek, MSc and Certified Professional Geologist, who is a Qualified Person as defined under National Instrument 43-101.
PRIMARY ENERGY METALS INC. (CSE: PRIM) is a listed junior exploration company and is engaged in the business of acquiring, exploring and developing ethically sourced Cobalt, Copper, Nickel, Vanadium, Uranium and Silver/Gold focussed mineral resource properties to create value for its shareholders.
ACQUISITION FOCUS – Other projects Primary is investigating are in the clean energy sector. In this sector, the Company is focused specifically upon exploration opportunities to source green energy power minerals for use in battery production. Primary’s interests in this sector are guided by the following:
- Identifying opportunities in regions that are conducive to mining due to the regulatory nature of the government with existing infrastructure.
- Identifying opportunities in geographical locations that provide easy access large markets for these metals.
- Identifying opportunities with locations with existing mine shafts.
ON BEHALF OF THE BOARD OF DIRECTORS
/s/ Patrick Morris
CEO and President
Telephone: +1 778-735-1000
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward- looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co- operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.