Purepoint Uranium Group Announces C$850,000 Private Placement
TSX VENTURE: PTU
TORONTO, Nov. 29, 2017 (GLOBE NEWSWIRE) -- Purepoint Uranium Group Inc. (TSXV:PTU) (the “Company”) announced a non-brokered private placement (the “Private Placement”) of up to 8,500,000 flow-through units (the “Flow-Through Units”) at a price of $0.10 per unit for aggregate gross proceeds up to $850,000. Each Flow-Through Unit consists of one common share in the capital of the Company to be 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 $0.15 per share for a period of 24 months from the date of issuance.
“With the financial support of our Hook Lake joint venture partners and a healthy balance sheet, the Company is well positioned for a successful 2018,” said Chris Frostad, President and CEO at Purepoint.
Today, the Company is announcing the first tranche closing of the Private Placement for gross proceeds of $500,000. In connection with the first tranche closing, the Company issued 5,000,000 Flow-Through Units at a price of $0.10 per unit. The closing is subject to final acceptance by the TSX Venture Exchange of the Private Placement.
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 first 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 March 30, 2018.
About Purepoint Uranium Group Inc.
Purepoint Uranium Group Inc. is focused on the precision exploration of its seven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with two of the largest uranium producers in the world, Cameco Corporation and AREVA Resources Canada Inc. Established in the Athabasca Basin well before the initial resurgence in uranium earlier last decade, Purepoint is actively advancing a large portfolio of multiple drill targets in the world's richest uranium region.