Purepoint Uranium Group Inc. Closes Its Fully Subscribed Private Placement for Gross Proceeds of C$3.5 Million
Purepoint Uranium Group Inc. Closes Its Fully
Subscribed Private Placement for Gross
Proceeds of C$3.5 Million
Toronto, Ontario--(Newsfile Corp. - April 14, 2022) - Purepoint Uranium Group Inc. (TSXV: PTU)
("
Purepoint
" or the "
Company
") has announced the closing of its brokered private placement (the
"
Private Placement
") previously announced on March 14, 2022, with Red Cloud Securities Inc. ("
Red
Cloud
") pursuant to which Red Cloud acted as lead agent and sole bookrunner. In connection with the
closing, the Company issued 25,001,000 flow-through units ("
FT Units
") at a price of C$0.14 per FT
Unit for aggregate gross proceeds of C$3,500,140.
Each FT Unit consists of one common share in the
capital of the Company (each, a "
Flow-Through Share
") issued on a "flow through" basis pursuant to
the Income Tax Act (Canada) and one common share purchase warrant (each, a "
Warrant
").
Each
Warrant entitles its holder to purchase one common share in the capital of the Company at an exercise
price of C$0.20 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 closing of the Private Placement, the Company has paid Red Cloud cash
commissions in the aggregate amount of C$210,008.40 and issued to Red Cloud 1,500,060 non-
transferrable compensation warrants ("
Broker Warrants
"), with each Broker Warrant exercisable to
purchase one common share of the Company at a price of C$0.14 per share for a term of 24 months
following the closing date.
The gross proceeds from the sale of Flow-Through Shares will be used for the exploration and
advancement of the Company's projects in the Athabasca Basin in Saskatchewan and will be used to
incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow
through mining expenditures" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will
be renounced to the subscribers with an effective date not later than December 31, 2022, in the
aggregate amount of not less than the total amount of gross proceeds raised from the issue of Flow-
Through Shares. 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 August 15,
2022.
About Purepoint
Purepoint Uranium Group Inc. actively operates an exploration pipeline of 12 advanced projects in
Canada's Athabasca Basin, the world's richest uranium region. 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 Project is on trend with recent high-grade uranium
discoveries including Fission Uranium's Triple R Deposit and NexGen's Arrow Deposit and
encompasses its own Spitfire discovery (53.3% U3O8 over 1.3m including 10m interval of 10.3%
U3O8). Together with its flagship project, the Company's projects stretch across approximately 175,000
hectares of claims throughout the Athabasca Basin.
These claims host over 20 distinct and well-defined
drill target areas with advanced geophysical surveys completed, and in some cases, have had first pass
drilling performed.
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. 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
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/120424