June 1 2005 – Purepoint Uranium Group Inc. TSX-V:CBL.P (formally Casablanca Capital Corp.) (“Purepoint”), a Capital Pool Company, has closed the previously announced arm’s length purchase and sale of all of the issued and outstanding common shares (“Purepoint Shares”) of Purepoint Uranium Corporation, making it the most recently TSX-Venture listed company in the uranium sector.
The acquisition is Purepoint’s qualifying transaction (the “Qualifying Transaction”) pursuant to the policies of the TSX Venture Exchange (the “Exchange”). The Qualifying Transaction remains subject to Purepoint satisfying all of the final conditions of the Exchange.
“As the worldwide demand for nuclear power continues to grow exponentially, the uranium industry is experiencing a remarkable resurgence unprecedented in recent times,” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc. “This growth is evidenced by a uranium spot price increase of over 165% in only 24 months.”
In anticipation of the pending global shortages of uranium, Purepoint was one of the first exploration companies to go back to the Athabasca Basin since interest in the area waned in the 1970s. In December 2002, the founders began implementing precision prospecting with a unique methodology for identifying uranium in distinct, targeted uranium exploration properties with historic significance.
“We began researching and assessing properties in the Athabasca Basin when the Basin was relatively wide open to claim,” said Frostad. “That led us to select and stake seven highly prospective Basin properties covering nearly 120,000 hectares, long in advance of the recent rush to claim any and all Basin properties. It also enabled us to pick up some fabulous talent, building a management team with deep provincial and regulatory ties, as well as decades of experience in the uranium industry and in particular the Athabasca Basin.”
On May 26, 2005, at a meeting held prior to the closing of the Qualifying Transaction, the shareholders of the Corporation elected Christopher Frostad, Christopher Rich, Peter Hooper, Allan Beach and David Carbonaro to the board and approved resolutions: continuing the Corporation under the Canada Business Corporation Act; changing the name of the company to Purepoint Uranium Group Inc.; approving a new stock options plan; and changing its auditors from Kraft, Berger, Grill, Schwartz, Cohen & March LLP to Moore Stephens Cooper Molyneux LLP. The newly elected directors of the Corporation subsequently resolved to move the Corporation’s registered office from Calgary, Alberta to Toronto, Ontario. On May 30, 2005, the Corporation acquired 1,644,277of the issued and outstanding Purepoint Shares through the issuance of 32,885,556 common shares in the capital of Purepoint (“Common Shares”). Purepoint now holds 100% of the issued and outstanding Purepoint Shares. Immediately following the closing of the Qualifying Transaction, there were 34,885,556 Common Shares issued and outstanding.
At the closing of the Qualifying Transaction, 1,000,000 Common Shares were transferred in escrow to Mr. David Carbonaro at a price of $0.10 per share.
Further information with regard to the Qualifying Transaction is contained in the Filing Statement of the Corporation dated May 18, 2005, which may be found on SEDAR at www.sedar.com.
Purepoint Uranium Corporation is a uranium exploration company driven by intellectual, precision prospecting focusing on distinct, targeted properties with historic significance in the Canadian Athabasca Basin. Currently, Purepoint’s seven Athabasca Basin uranium projects cover 120,000 hectares and are considered high prospect properties that include several near term targets expected to be drill ready for winter 2005/06.