Purepoint Uranium Announces Private Placement
Purepoint Uranium Announces Private
Placement
Toronto, Ontario--(Newsfile Corp. - November 27, 2023) - Purepoint Uranium Group Inc. (TSXV: PTU)
(OTCQB: PTUUF) ("
Purepoint
" or the "
Company
") announced a non-brokered private placement (the
"
Offering
") of up to 47,619,048 flow-through units (the "
Flow-Through Units
") at a price of $0.0525
per unit for aggregate gross proceeds up to $2,500,000.
Each Flow-Through Unit consists of one
common share of the Company to be issued on a "flow through" basis pursuant to the Income Tax Act
(Canada) (each a "
Flow-Through Share
") and one common share purchase warrant.
Each warrant
entitles its holder to purchase one common share of the Company (each a "
Warrant Share
") at an
exercise price of $0.07 per share for a period of 24 months from the date of issuance.
The net proceeds of the Offering will be used for the exploration and advancement of the Company's
projects in the Athabasca Basin, Saskatchewan. The gross proceeds of the Flow-Through Shares sold
under the Offering will be used for Canadian Exploration Expenses (within the meaning of the
Income
Tax Act
(Canada)) which qualify as a "flow-through critical mineral mining expenditure" for purposes of
the
Income Tax Act
(Canada) related to the exploration program of the Company to be conducted on the
Company's properties located in the Province of Saskatchewan. The Company will renounce such
Canadian Exploration Expenses with an effective date of no later than December 31, 2023. The
Canadian Exploration Expenses to be renounced by the Company will qualify for the critical mineral
exploration tax credit under the
Income Tax Act
(Canada).
In connection with the Offering, the Company has agreed to pay to certain finders facilitating the Offering
including Red Cloud Securities Inc. (collectively, the "
Finders
"), a cash commission equal to 6% of the
gross proceeds of the Offering raised through the Finders and issue to the Finders non-transferrable
compensation warrants (the "
Compensation Warrants
") to purchase in aggregate such number of
common shares of the Company (the "
Compensation Warrant Shares
") as equal to 6% of the number
of Flow-Through Units sold through the Finders under the Offering. Each Compensation Warrant entitles
its holder to purchase one Compensation Warrant Share at an exercise price of $0.0525 per share for a
period of 24 months from the date of issuance.
The completion of the Offering is subject to certain conditions including, but not limited to, the receipt of
all necessary regulatory and corporate approvals, including the approval of the listing of the Flow-
Through Shares, the Warrant Shares and the Compensation Warrant Shares on the TSX Venture
Exchange. Resale of the securities of the Company distributed under the Offering will be subject to a
statutory hold period in Canada of four months and one day following the closing date of the Offering.
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) actively operates a uranium exploration
pipeline of nine advanced projects in Canada's Athabasca Basin. In addition to its flagship joint venture
project at Hook Lake with partners Cameco and Orano and a second joint venture with Cameco at
Smart Lake, Purepoint also holds seven 100% owned projects with proven uranium rich targets. With an
aggressive exploration program underway on multiple projects, Purepoint is emerging as the preeminent
uranium explorer in the world's richest uranium district.
For more information, please contact:
Chris Frostad, President & CEO
Phone: (416) 603-8368
Email:
For additional information please visit our new website at
https://purepoint.ca
,
our Twitter feed:
@PurepointU3O8
or our LinkedIn page
@Purepoint-Uranium
.
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 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.
Not for Dissemination in the United States or through U.S. Newswire Services
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