Purepoint Uranium Group Inc. Closes First Tranche of Private Placement
Purepoint Uranium Group Inc. Closes First
Tranche of Private Placement
/NOT FOR DISSEMINATION IN
THE UNITED STATES
OR THROUGH U.S. NEWSWIRE
SERVICES/
TORONTO
,
Dec. 19, 2019
/CNW/ - Purepoint Uranium Group Inc. (TSXV: PTU) ("
Purepoint
" or the
"
Company
") closes its first tranche of its non-brokered private placement (the "
Private Placement
")
previously announced on
December 10, 2019
. The Private Placement was subscribed for aggregate
gross proceeds of
$502,004.50
. In connection with the Private Placement, the Company issued
7,723,146 flow-through units ("
Flow-Through Units
") at a price of
$0.065
per unit. 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
$0.08
per share for a period of 24 months from the date of issuance. The closing is
subject to final acceptance by the TSX Venture Exchange of the Private Placement.
In connection with the Private Placement, the Company paid finders' fees consisting of
$30,120.27
plus applicable taxes in cash and issued 463,389 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
$0.08
per share for a period of 24 months after the date of
issuance.
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 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 19
, 2020.
Hook Lake JV Project
The Hook Lake JV project is owned jointly by Cameco Corp. (39.5%), Orano Canada Inc. (39.5%)
and Purepoint Uranium Group Inc. (21%) as operator and consists of nine claims totaling 28,598
hectares situated in the southwestern
Athabasca
Basin. The Hook Lake JV is considered one of the
highest quality uranium exploration projects in the
Athabasca
Basin due to its location along the
prospective
Patterson Lake
trend and the relatively shallow depth to the unconformity.
Current exploration is targeting the Patterson Lake Corridor that hosts Fission's Triple R Deposit
(indicated mineral resource 87,760,000 lbs U3O8 at an average grade of 1.82% U3O8 –
www.fissionuranium.com
), NexGen Energy's Arrow Deposit (indicated mineral resource 256,600,000
lbs U3O8 at an average grade of 4.03% –
www.nexgenenergy.ca
) and the Spitfire Discovery by
the Hook Lake JV. The foregoing mineral resource disclosure is information about the properties
adjacent Company's property and does not imply that the Company will obtain similar information
from its own property.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of its ten projects in the
Canadian Athabasca Basin, the world's richest uranium region. Established in the
Athabasca
Basin
well before the initial resurgence in uranium earlier last decade, Purepoint's flagship project is the
Hook Lake Project, a joint venture with two of the largest uranium suppliers in the world, Cameco
Corporation and Orano Canada Inc. The Hook Lake JV is on trend with recent high-grade uranium
discoveries including Fission Uranium's Triple R Deposit, NexGen's Arrow Deposit and Purepoint's
Spitfire discovery.
Scott Frostad BSc
, MASc, PGeo, Purepoint's Vice President, Exploration, is the Qualified
Person responsible for technical content of this release.
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.
SOURCE
Purepoint Uranium Group Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/December2019/19/c5921.html
%SEDAR: 00020406E
For further information:
Chris Frostad, President & CEO, Phone: (416) 603-8368, Email:
CO: Purepoint Uranium Group Inc.
CNW 06:30e 19-DEC-19