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
,
April 7, 2021
/CNW/ - Purepoint Uranium Group Inc. (TSXV: PTU) ("
Purepoint
" or the
"
Company
") announced the closing of its brokered private placement (the "
Private Placement
")
previously announced on
March 17, 2021
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 20,404,095 flow-through units ("
FT Units
") at a price of
$0.105
per unit and
31,750,778 hard-dollar units (
"Units"
together with the FT Units are hereinafter referred to as the
"
Offered Securities
") at a price of
$0.09
per unit for aggregate gross proceeds of
$5,000,000
.
Each Unit consists of one common share in the capital of the Company and one common share
purchase warrant (each, a "
Warrant
"). 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 half of one Warrant. Each Warrant entitles its holder to purchase
one common share in the capital of the Company at an exercise price of
$0.13
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
and a
member of the selling group cash commissions in the aggregate amount of
$342,650
, and issued to
Red Cloud
3,569,174 non-transferrable compensation warrants ("
Broker Warrants
") with each
Broker Warrant exercisable to purchase one common share of the Company at a price of
C$0.105
per share for a term of 24 months following the Closing Date.
The net proceeds raised from the sale of Units will be used for the exploration and advancement of
the Company's projects in the
Athabasca
Basin in
Saskatchewan
and for general working capital
purposes. The gross Proceeds from the sale of Flow-Through Shares 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, 2021
, 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 8
, 2021.
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.
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 10:45e 07-APR-21