Purepoint Uranium Group Inc. Closes $1,000,000 Private Placement and Engages Red Cloud for Liquidity Services
Purepoint Uranium Group Inc. Closes
$1,000,000 Private Placement and Engages
Red Cloud for Liquidity Services
Toronto, Ontario--(Newsfile Corp. - December 24, 2024) - Purepoint Uranium Group Inc. (TSXV: PTU)
(OTCQB: PTUUF) ("
Purepoint
" or the "
Company
") announced today the closing of its non-brokered
private placement (the "
Private Placement
"). In connection with the closing, the Company issued
2,857,157 flow-through units ("
Flow-Through Units
") at a price of $0.35 per unit for aggregate gross
proceeds of $1,000,004.95.
Each Flow-Through Unit consists of one common share in the capital of the
Company 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 $0.40 per share for a period of 24 months from the date of
issuance.
In connection with the closing of the Private Placement, the Company paid finder's fees consisting of, in
aggregate, $45,000.90 in cash and 128,574 non-transferable compensation warrants. Each
compensation warrant entitles its holder to purchase one common share in the capital of the Company at
an exercise price of $0.40 per share for a period of 24 months after the closing date.
The net proceeds of the Private Placement will be used for the exploration and advancement of the
Company's projects in the Athabasca Basin, Saskatchewan. All securities issued in connection with the
closing of the Private Placement are subject to a four-month hold period pursuant to the applicable
securities laws with an expiry date of April 24, 2025.
The Company further announces that, subject to regulatory approval, it has retained Red Cloud
Securities Inc. ("
Red Cloud
") to provide liquidity services to the Company in compliance with the
policies and guidelines of the TXV Venture Exchange ("
TSXV
") and other applicable legislation. Red
Cloud is a Toronto-based financial services company that provides assistance to mineral exploration
and mining companies in accessing capital markets and enhancing their corporate profile. Red Cloud
will trade shares of Purepoint on TSXV for the purposes of maintaining a reasonable market and
improving the liquidity of Purepoint's common shares.
Under the agreement, the Company will pay Red Cloud $5,000 per month during the term, payable
monthly in advance. The term of engagement is ongoing and may be terminated by either party on 30
days' prior written notice. The Company and Red Cloud have an arm's length relationship, but Red Cloud
and/or its clients may have an interest, directly or indirectly, in the securities of Purepoint. The agreement
is principally for the purposes of maintaining market stability and liquidity for the Company's common
shares and is not a formal market making agreement. There are no performance factors contained in the
agreement between Red Cloud and the Company and Red Cloud will not receive any shares or options
from the Company as compensation for services it will render.
About Purepoint
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 more information, please contact:
Chris Frostad, President & CEO
Phone: (416) 603-8368
Email:
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 including the Company's proposed use of proceeds of the Private
Placement. 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 Immediate Release - Not for Dissemination in the United States or through U.S. Newswire
Services
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https://www.newsfilecorp.com/release/234975