Purepoint Uranium Group Inc. Raises Ceiling for Private Placement
TORONTO, Nov. 30, 2017 (GLOBE NEWSWIRE) -- Purepoint Uranium Group Inc. (TSXV:PTU) (the “Company”) announced its intention to raise the ceiling for the previously announced non-brokered private placement (the “Private Placement”) from $850,000 to $1,200,000. Up to 12,000,000 flow-through units (the “Flow-Through Units”) at a price of $0.10 per unit are issuable pursuant to the Private Placement. Each Flow-Through Unit consists of one common share in the capital of the Company to be issued on a “flow through” basis pursuant to the Income Tax Act (Canada) and one common share purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.15 per share for a period of 24 months from the date of issuance.
“We are very encouraged by the strong response to this financing and we are scheduled to close the remainder of the private placement in the coming week,” said Chris Frostad, President & CEO of Purepoint. “With the restart of the 2017 drilling program at Hook Lake and the budget secured for the 2018 exploration program, we look forward to advancing more high-priority targets along the Patterson Uranium District.”
The Company also announced the second tranche closing of the Private Placement for gross proceeds of $20,000. In connection with the second tranche closing, the Company issued 200,000 Flow-Through Units at a price of $0.10 per unit and paid a finder’s fee consisting of $1,200 in cash and issued 12,000 non-transferrable compensation warrants. Each compensation warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.15 per share for a period of 24 months after the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the Private Placement.
The net proceeds of the Private Placement will be used to advance the Company’s Hook Lake exploration program in Saskatchewan. All securities issued in connection with the second tranche closing of the Private Placement are subject to a four-month hold period pursuant to the applicable securities laws.
About Purepoint Uranium Group Inc.
Purepoint Uranium Group Inc. is focused on the precision exploration of its seven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with two of the largest uranium producers in the world, Cameco Corporation and AREVA Resources Canada Inc. Established in the Athabasca Basin well before the initial resurgence in uranium earlier last decade, Purepoint is actively advancing a large portfolio of multiple drill targets in the world's richest uranium region.
Disclosure regarding forward-looking statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.
For more information, please contact:
Chris Frostad, President & CEO
Phone: (416) 603-8368
Email: cfrostad@purepoint.ca
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