May 15 2009 – Purepoint Uranium Group Inc. (TSX-V: PTU), today announced that its board of directors has approved the adoption of a shareholder rights plan (Rights Plan), effective immediately, subject to acceptance by the TSX Venture Exchange.
The Rights Plan is designed to encourage the fair treatment of Purepoint’s shareholders should a take-over bid be made for Purepoint by providing the board and the shareholders with more time to evaluate any unsolicited take-over bid and, if appropriate, to pursue alternatives to maximize shareholder value. The Rights Plan has not been adopted in response to any specific proposal to acquire control of Purepoint, and Purepoint is not aware of any such proposal.
The Rights Plan is effective immediately but it must be ratified by shareholders of Purepoint within six months. Shareholders will be asked to ratify and approve the Rights Plan at the annual and special meeting of shareholders of Purepoint to be held on June 11, 2009. If ratified, the Rights Plan will remain in effect until the close of business on the date of termination of the annual meeting of shareholders in 2012, subject to earlier termination or expiration of the Rights Plan in accordance with its terms. The Rights Plan must be ratified by a majority of the votes cast at the meeting by independent shareholders. If the Rights Plan is not ratified at the meeting, all rights issued pursuant to the Rights Plan and the Rights Plan will terminate and be null and void and of no further force and effect.
The Rights Plan is similar to rights plans adopted by other Canadian corporations. Subject to the terms of the Rights Plan, the rights issuable under the Rights Plan will become exercisable in the event any person, together with persons related to it, acquires or announces its intention to acquire 20% or more of Purepoint’s outstanding shares without complying with the “Permitted Bid” provisions of the Rights Plan or without approval of the Board. In that event Rights holders (other than the acquiring person and related persons) are entitled to purchase shares of Purepoint at one-half the prevailing market price at the time the rights become exercisable.
The Rights Plan is not intended to prevent take-over bids. Under the Rights Plan, a bid that, among other things, is made to all shareholders on identical terms and conditions and that is open for at least 60 days may constitute a “Permitted Bid”.
The Rights Plan is available at www.sedar.com or on request from Purepoint.
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its nine 100% owned projects in the Canadian Athabasca Basin, and its two Basin projects joint ventured with Cameco Corporation and AREVA Resources Canada Inc. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing this large portfolio of multiple drill targets in the world’s richest uranium region.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO