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Re: News Releases - Monday, May 07, 2007
Primary Metals Announces Wind Generation Project
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Primary Metals Inc. (the "Company") is pleased to announce that
Enernova - Novas Energias SA, ("Enernova") a subsidiary of Electricidad
de Portugal, ("EDP"), the sole transmitter and largest producer and
distributor of electricity in Portugal, will commence construction of
eolic wind energy generators on the Company's property in central
Portugal. Construction is planned to start in the first quarter of 2008
and will include six or seven 2-megawatt generators, which will be
located on hilltop land to the north of the Company's Panasqueira
tungsten mine. The electrical power generated will be directed to the
national grid.
Under the terms of the agreement, originally signed in July 2001,
Enernova will pay the Company's wholly owned subsidiary, Beralt Tin and
Wolfram (Portugal) S.A. ("Beralt"), ?65,000 (CDN$100,000) upon the
start of construction. A further ?500,000 (CDN$750,000) will be payable
upon start-up of the generators, scheduled for the first quarter of
2009.
Beralt has been receiving ?4,000 (CDN$6,000) per annum to reserve the
area for Enernova's use since 2001. After start-up and during the
25-year term of the contract, Beralt will be paid ?27,500 (CDN$41,000)
annually plus a further ?2,000 (CDN$3,000) per megawatt of installed
capacity.
Primary Metals Inc., through Beralt, owns a 100 percent interest in the
Panasqueira tungsten mine in Portugal and is currently producing some
100,000 MTUs of tungsten trioxide in concentrates per annum. Tungsten
is currently trading at around US$260 per MTU. The Panasqueira mine has
a long history of production of high-quality wolframite concentrates
and is the dominant producer of high-grade tungsten concentrates
outside China. Further information is available at www.sedar.com and on
the Company's website at www.primarymetals.ca
On Behalf of the Board of Directors,
"James Robertson"
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James Robertson, P. Eng., Director
For further information contact:
Vancouver Office:
James Robertson
Phone: 604.669.8988
Email: info@primarymetals.ca
Website: www.primarymetals.ca
Investor Relations:
Jamie Mathers, Ascenta Capital Partners Inc.
Phone: 604.628.5800 extension 236
Toll free: 1.866.684.4209
Email: jamie@ascentacapital.com
The TSX Venture Exchange does not accept responsibility for the
adequacy or the accuracy of this release.
James Robertson, P. Eng., is a Qualified Person for Primary Metals Inc.
and has reviewed and approved the information contained in this
release. The historical resource estimates provided in this release are
presented in a report dated July 18, 1979 on the Argimela Tin Prospect
by Dan D. Greig for Essex Minerals Co., a subsidiary of United States
Steel Corporation utilizing extensive information dating back to the
1960's.
This News Release contains forward-looking statements respecting the
company's expectations as to the future price of tin, its planned work
program, and potential mineralization, resources and reserves. Such
statements are based on certain assumptions, including that recent
demand for tin will continue or increase without a corresponding
increase in alternate sources of supply, availability of capital,
equipment and personnel to carry out the planned work program and
accuracy within a reasonable range of reported historical exploration
results, and involve various risks and uncertainties, including global
economic factors, future commodity prices, lack of availability of
equipment or personnel, and results of exploration. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Other important factors that could
cause actual results to differ materially from the Company's
expectations are disclosed under the heading "Risk Factors" and
elsewhere in the Company's documents filed from time-to-time with
regulatory authorities and on www.sedar.com
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Copyright (c) 2007 PRIMARY METALS INC. (PMI) All rights reserved. For
more information visit our website at http://www.primarymetalsinc.ca/
or send mailto:info@primarymetalsinc.ca
Message sent on Fri May 4, 2007 at 2:55:05 PM Pacific Time
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