Primary Energy Metals Inc. (CSE:PRIM) said Wednesday that it has agreed to buy all of the outstanding shares of Prost Vanadium Ltd, which holds the rights to 176 vanadium and uranium lode claims in the La Sal District of San Juan, Utah.
Under the agreement, Primary will issue 12 million common shares to the shareholders of Vancouver-based Prost and assume liabilities of about US$150,000.
READ: Primary Energy Metals to acquire 199 lode claims in Utah's Polar Mesa area
“We are very pleased to increase our land position in Utah with these additional past producing mines,” Patrick Morris, the CEO of Vancouver-based Primary, said in a statement. “We believe this strategic acquisition will not only be good for our shareholders but for the supply chain.”
The common shares will have the market price at the time of issuance. No finders' fees are payable in connection with the deal, Primary said. The purchase is not expected to result in a change of control of the company.
In September, Primary said it agreed to acquire a 100% interest in unpatented lode claims in the Polar Mesa area of Utah.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.com