Neutron has exercised its option to make this purchase in accordance with an option agreement between the company and Neutron revealed on November 12, 2009, which was subsequently extended.

Amir Adnani, president and CEO, said: “We are very pleased to complete this transaction. As a consequence, the company’s balance sheet is now in a strong position with working capital of over $26m and no debt.

“The plan is to apply the proceeds from the sale directly to expand the Company’s major opportunity in Texas where we are effecting a regional strategy of developing satellite ISR uranium projects to feed the Company’s fully-licensed Hobson central processing plant.”

The company said that presently, it is carrying through near-term production strategies at the company’s Palangana and Goliad ISR uranium projects and, with this additional cash infusion, it anticipates that it has sufficient resources to complete these production plans.

At Palangana, which is fully permitted, the company is expanding the resource base while continuing to perform engineering studies related to production. Concurrently, the company is moving through the final stages of mine permitting at the Goliad ISR project. Uranium recovered from both sites will feed the central processing plant at Hobson.