IsoEnergy Exercises Put Option to Strengthen Partnership with Purepoint
IsoEnergy Exercises Put Option to Strengthen
Partnership with Purepoint
Toronto, Ontario--(Newsfile Corp. - January 15, 2025) - IsoEnergy Ltd. (TSX: ISO) (OTCQX: ISENF)
("
IsoEnergy
") and Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) ("
Purepoint
") are
pleased to announce that IsoEnergy has exercised its put option ("
Put Option
") under the terms of their
joint venture (the "
Joint Venture
"), as announced in a press release dated December 19, 2024. With
this strengthened partnership, both companies are now strategically positioned to collaboratively
advance the exploration of 10 highly prospective uranium projects spanning over 98,000 hectares in the
eastern Athabasca Basin, renowned as one of the world's most prolific uranium districts.
The exercise of the Put Option establishes a balanced 50/50 ownership structure for the Joint Venture,
with Purepoint acquiring 10% of IsoEnergy's JV interest in exchange for 4 million shares, enhancing
IsoEnergy's exposure to Purepoint's diverse portfolio and partnerships, including:
Hook Lake Joint Venture:
In partnership with Cameco and Orano, this project is strategically
located on the western side of the Athabasca Basin, along the same trend as Fission Uranium's
Triple R and NexGen's Arrow deposits. Notably, the Spitfire discovery within this joint venture
returned 10.3% U
O
over 10.0 metres;
Smart Lake Joint Venture:
In partnership with Cameco, this project is situated on the western
side of the Athabasca Basin, approximately 18 km west-northwest of Hook Lake and 60 km south-
southwest of Orano's historic Cluff Lake Mine. Drilling at Smart Lake intersected 15.4 metres of
147 ppm U at just 200 metres below surface. Purepoint recently announced a $1.2 million drill
program for this project;
and
Denare West VHMS Project:
Optioned to Foran Mining, this project is strategically located in
east-central Saskatchewan, adjacent to and along the same trend as Foran's flagship McIlvenna
Bay Project.
Philip Williams, CEO of IsoEnergy, commented,
"The transition to a 50/50 partnership aligns our
interests and strengthens our collaboration as we advance some of the most promising uranium
assets in the Athabasca Basin.
By increasing our equity position in Purepoint, IsoEnergy enhances its
exposure to a diverse and strategically valuable portfolio, with a view to ensuring we are positioned to
capitalize on their broader exploration successes. IsoEnergy's equity portfolio is now worth
approximately $40 million including positions in Nexgen Energy Ltd., Premier American Uranium
Inc., Atha Energy Corp., Jaguar Uranium Corp., Future Fuels Inc., and Purepoint Uranium Group
Inc.
[1]
"
Chris Frostad, President and CEO of Purepoint, added,
"IsoEnergy's decision to exercise their Put
Option underscores the strength of our partnership and the potential of our Joint Venture projects. We
believe that together, as equal partners, we are uniquely positioned to advance these high-value
assets while leveraging the financial and operational strengths that come from our collaboration."
Under the terms of the Put Option, IsoEnergy will receive 4,000,000 common shares of Purepoint ("PTU
Shares") in exchange for 10% of IsoEnergy's interest the Joint Venture, increasing IsoEnergy's
ownership in Purepoint to [11.4%]. Following the exercise of the Put Option, IsoEnergy owns an
aggregate of 7,333,334 PTU Shares and 3,333,334 warrants to acquire PTU Shares, representing
approximately 11.41% of the issued and outstanding PTU Shares on a non-diluted basis, and
approximately 15.78% of the issued and outstanding PTU Shares on a partially diluted basis, assuming
the exercise of the warrants held by IsoEnergy.
The Joint Venture remains a cornerstone of both companies' exploration strategies. This equal
partnership ensures full alignment and a shared commitment to driving uranium discoveries across one
of the world's most prolific uranium districts.
About IsoEnergy Ltd.
IsoEnergy is a leading, globally diversified uranium company with substantial current and historical
mineral resources in top uranium mining jurisdictions of Canada, the U.S. and Australia at varying stages
of development, providing near-, medium- and long-term leverage to rising uranium prices. IsoEnergy is
currently advancing its Larocque East project in Canada's Athabasca basin, which is home to the
Hurricane deposit, boasting the world's highest-grade indicated uranium mineral resource.
IsoEnergy also holds a portfolio of permitted past-producing, conventional uranium and vanadium mines
in Utah with a toll milling arrangement in place with Energy Fuels. These mines are currently on standby,
ready for rapid restart as market conditions permit, positioning IsoEnergy as a near-term uranium
producer.
About Purepoint Uranium Group Inc.
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) is a focused explorer with a dynamic
portfolio of advanced projects within the renowned Athabasca Basin in Canada. The most prospective
projects are actively operated on behalf of partnerships with industry leaders including Cameco
Corporation, Orano Canada Inc. and IsoEnergy Ltd.
Additionally, the Company holds a promising VHMS project currently optioned to and strategically
positioned adjacent to and on trend with Foran Corporation's McIlvena Bay project. Through a robust and
proactive exploration strategy, Purepoint is solidifying its position as a leading explorer in one of the
globe's most significant uranium districts.
Qualified Person Statement
The scientific and technical information contained in this news release relating to Purepoint was
reviewed and approved by Scott Frostad BSc, MASc, PGeo, Purepoint's Vice President, Exploration,
who is the Qualified Person responsible for technical content of this release.
For further information, please contact:
IsoEnergy Ltd.
Philip Williams, CEO and Director
(833) 572-2333
www.isoenergy.ca
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
www.purepoint.ca
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press
release.
Disclosure regarding forward-looking statements
This press release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-
looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved". This forward-looking information may
relate to the anticipated benefits of the Joint Venture to the parties and their respective shareholders;
the expected ownership interests of IsoEnergy and Purepoint in the Joint Venture; the prospects of
each company's respective projects, including mineralization of each project; the potential for,
success of and anticipated timing of commencement of future exploration and development of the
Joint Venture projects; and any other activities, events or developments that the companies expect or
anticipate will or may occur in the future.
Forward-looking statements are necessarily based upon a number of assumptions that, while
considered reasonable by management at the time, are inherently subject to business, market and
economic risks, uncertainties and contingencies that may cause actual results, performance or
achievements to be materially different from those expressed or implied by forward-looking
statements. Such assumptions include, but are not limited to, the accuracy of management's
assessment of the anticipated benefits of the Joint Venture;
the anticipated mineralization of
IsoEnergy's and Purepoint's projects being consistent with expectations and the potential benefits
from such projects and any upside from such projects;
the price of uranium; that general business and
economic conditions will not change in a materially adverse manner; that financing will be available if
and when needed and on reasonable terms; and that third party contractors, equipment and supplies
and governmental and other approvals required to conduct the Joint Venture's planned activities will
be available on reasonable terms and in a timely manner. Although each of IsoEnergy and Purepoint
have attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance that such information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking information.
Such statements represent the current views of IsoEnergy and Purepoint with respect to future events
and are necessarily based upon a number of assumptions and estimates that, while considered
reasonable by IsoEnergy and Purepoint, are inherently subject to significant business, economic,
competitive, political and social risks, contingencies and uncertainties. Risks and uncertainties
include, but are not limited to the following: the inability of the Joint Venture to realize the benefits
anticipated from the Joint Venture and the timing to realize such benefits; changes to IsoEnergy's
and/or Purepoint's current and future business plans and the strategic alternatives available thereto;
growth prospects and outlook of Purepoint's business; regulatory determinations and delays; stock
market conditions generally; demand, supply and pricing for uranium; and general economic and
political conditions in Canada, the United States and other jurisdictions where the applicable party
conducts business. Other factors which could materially affect such forward-looking information are
described in the risk factors in each of IsoEnergy's and Purepoint's most recent annual
management's discussion and analyses or annual information forms and IsoEnergy's and Purepoint's
other filings with the Canadian securities regulators which are available, respectively, on each
company's profile on SEDAR+ at
www.sedarplus.ca
. IsoEnergy and Purepoint do not undertake to
update any forward-looking information, except in accordance with applicable securities laws.
[1]
IsoEnergy's equity holdings are reported as of market close on January 9, 2025, and includes a $7.5 million investment in Future Fuels Inc., that is
expected to be completed in January 2025.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/237182