Purepoint Uranium Group Inc. Closes its Private Placement
Purepoint Uranium Group Inc. Closes its
Private Placement
/NOT FOR DISSEMINATION IN
THE UNITED STATES
OR THROUGH U.S. NEWSWIRE
SERVICES/
TORONTO
,
Dec. 31, 2019
/CNW/ - Purepoint Uranium Group Inc. (TSXV: PTU) ("
Purepoint
" or the
"
Company
") closes the final tranche of its non-brokered private placement (the "
Private
Placement
") previously announced on
December 10, 2019
. In connection with the final tranche
closing, the Company issued 769,232 flow-through units ("
Flow-Through Units
") at a price of
$0.065
per unit for aggregate gross proceeds of
$50,000
. 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.
Together with the first tranche of the Private Placement, the Company issued a total of 8,492,378
Flow Through Units for aggregate gross proceeds of
$552,004.57
.
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 final tranche
closing of the Private Placement are subject to a four-month hold period pursuant to the applicable
securities laws with an expiry date of
May 1
, 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.
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For further information:
Chris Frostad, President & CEO, Phone: (416) 603-8368, Email:
CO: Purepoint Uranium Group Inc.
CNW 16:30e 31-DEC-19