IsoEnergy and Purepoint Uranium Complete Joint Venture
IsoEnergy and Purepoint Uranium Complete
Joint Venture
Toronto, Ontario--(Newsfile Corp. - December 19, 2024) -
IsoEnergy Ltd.
(TSX: ISO) (OTCQX: ISENF)
("IsoEnergy") and
Purepoint Uranium Group Inc.
(TSXV: PTU) (OTCQB: PTUUF) ("Purepoint") are
pleased to announce the successful implementation of their previously announced joint venture (the
"Joint Venture") (see press release dated October 22, 2024), consolidating 10 uranium projects
spanning over 98,000 hectares in the eastern Athabasca Basin, Saskatchewan (Figure 1). This strategic
collaboration strengthens both companies' efforts to advance high-potential uranium assets in one of the
world's premier uranium-producing regions.
The joint venture establishes an initial ownership structure of 60% by IsoEnergy and 40% by Purepoint,
with the option to adjust to a 50/50 split through the exercise of put/call options (the "Put/Call Option")
pursuant to which 10% of IsoEnergy's initial participation interest may be transferred to Purepoint in
exchange for 4,000,000 common shares of Purepoint (the "PTU Shares"). The Put/Call Option is
exercisable within six months of the Joint Venture's formation, with the exercise of one option resulting in
the expiry of the other. Following completion of the Put/Call Option period, IsoEnergy will hold a further
option to purchase an additional 1% interest from Purepoint for $2 million, giving IsoEnergy a 51%
participation interest and Purepoint a 49% participation interest. This option expires on the earlier of
February 28, 2026, or 60 days after a material uranium discovery. The ownership interests of each
company are subject to standard dilution, with any participation interest that is reduced to 10% or less
being automatically exchanged for a 2% net smelter royalty (NSR) on the Joint Venture properties.
The Joint Venture brings together a complementary portfolio of highly prospective properties
strategically positioned along the Larocque Trend, a region renowned for high-grade uranium
discoveries such as IsoEnergy's Hurricane Deposit (Figure 2). Subject to the terms of the Joint Venture
agreement, Purepoint will serve as operator during the exploration phase, while IsoEnergy will assume
operational control as the projects advance to pre-development stages. Work programs across the joint
portfolio are expected to commence in the near future.
Philip Williams, CEO and Director of IsoEnergy, commented, "This partnership allows us to advance a
promising portfolio of uranium projects while maintaining our focus on IsoEnergy's core development
assets. By working alongside Purepoint, a highly experienced operator in the Athabasca Basin, we
ensure these projects receive the dedicated attention and resources needed to unlock their full
potential."
Chris Frostad, President and CEO of Purepoint, added, "Our strategy of partnering with the strongest
players in the uranium sector ensures that our most prospective projects, like those within this joint
venture, are supported by a secure and sustainable source of funding. This collaboration not only
validates the potential of these assets but also aligns with our commitment to advance them responsibly
and efficiently."
Figure 1: Joint Venture Portfolio, including 10 Projects Covering More
Than 98,000 Hectares in
the Athabasca Basin
To view an enhanced version of this graphic, please visit:
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Figure 2: Complimentary and Prospective Ground Covering the Larocque Trend with Strong
Discovery Potential
* See Qualified Person Statement below.
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Early Warning Disclosure
In connection with the formation of the Joint Venture, IsoEnergy is deemed to have acquired beneficial
ownership of the 4,000,000 PTU Shares issuable upon exercise of the Put/Call Option pursuant to
applicable Canadian securities laws. Prior to the implementation of the Joint Venture, IsoEnergy
beneficially owned an aggregate of 3,333,334 PTU Shares and 3,333,334 warrants ("
PTU Warrants
"),
representing approximately 5.81% of the issued and outstanding PTU Shares on a non-diluted basis,
and approximately 10.98% of the issued and outstanding PTU Shares on a partially diluted basis,
assuming the exercise of the PTU Warrants held by IsoEnergy. Following implementation of the Joint
Venture, IsoEnergy beneficially owns an aggregate of 7,333,334 PTU Shares and 3,333,334 PTU
Warrants, assuming the exercise of the Put/Call Option, representing approximately 11.94% of the
issued and outstanding PTU Shares on a non-diluted basis, and approximately 16.48% of the issued
and outstanding PTU Shares on a partially diluted basis, assuming the exercise of the PTU Warrants
held by IsoEnergy.
While IsoEnergy currently has no plans or intentions with respect to the Purepoint securities, IsoEnergy
may develop such plans or intentions in the future and, at such time, may from time to time acquire
additional securities, dispose of some or all of the existing or additional securities or may continue to
hold the PTU Shares, PTU Warrants or other securities of Purepoint based on market conditions,
general economic and industry conditions, trading prices of Purepoint's securities, Purepoint's business,
financial condition and prospects and/or other relevant factors.
A copy of the early warning report to be filed by IsoEnergy will be available under Purepoint's profile on
SEDAR+ at www.sedarplus.ca or by contacting Graham du Preez, Chief Financial Officer of IsoEnergy,
at 306-373-6399. IsoEnergy's head office is located at 217 Queen St. West, Suite 401, Toronto, Ontario,
M5V 0R2.
Qualified Person Statement
The scientific and technical information contained in this news release relating to IsoEnergy was
reviewed and approved by Dr. Dan Brisbin, P.Geo., IsoEnergy's Vice President, Exploration, who is a
"Qualified Person" (as defined in NI 43-101 -
Standards of Disclosure for Mineral Projects
("NI
43-
101
")).
For additional information with respect to the current mineral resource estimate for IsoEnergy's
Hurricane Deposit, please refer to the Technical Report prepared in accordance with NI 43-101 entitled
"Technical Report on the Larocque East Project, Northern Saskatchewan, Canada" dated August 4,
2022, available under IsoEnergy's profile at
www.sedarplus.ca
.
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.
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 Joint Venture, including statements with respect to the anticipated benefits of the Joint
Venture to the parties; 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;
IsoEnergy's expectations with respect to the sale or
purchase or sale of Purepoint securities shares in the future;
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 effects of the successful completion of the Joint Venture and that the anticipated
benefits of the Joint Venture will be realized;
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 parties 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 IsoEnergy's and 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.
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