Toronto, January 10, 2013 – Purepoint Uranium Group Inc. (“Purepoint” or the “Company”) (TSX-V: PTU) today announced that it will be offering rights (the “Rights Offering”) to holders of its common shares (the “Common Shares”) of record at the close of business on January 30, 2013 (the “Record Date”), expiring March 4, 2013 (“Expiry Date”). The Rights Offering will be made in all of the provinces and territories of Canada.
“Raising capital through this mechanism allows our shareholders the opportunity to participate equitably while offering a longer term incentive in the form of warrants, an instrument not typically available to the general public,” said Chris Frostad, President & CEO of Purepoint.
Shareholders of record on January 30, 2013 will receive one right (a “Right”) for each Common Share held. Ten (10) Rights plus the sum of $0.07 will entitle the holder to subscribe for one unit of the Company (a “Unit”). Each Unit will be comprised of one Common Share and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase an additional Common Share at a price of $0.10 per Common Share at any time until 5:00 p.m. (Toronto time) on March 4, 2015 (the “Warrant Expiry Date”). Rights will be evidenced by transferable rights certificates (each, a “Rights Certificate”). The Rights expire at 5:00 p.m. (Toronto time) (the “Rights Expiry Time”) on March 4, 2013 (the “Rights Expiry Date”), after which time unexercised Rights will be void and of no value.
Shareholders are entitled to subscribe for additional Units, subject to certain limitations set out in the Company’s Rights Offering circular. A fully subscribed Rights Offering is expected to raise gross proceeds of approximately $680,000, which will be used for general corporate and administrative expenses.
Certain insiders of the Company have committed that they will be participating in this Rights Offering.
The Rights will be posted for trading on the TSX-V and will trade under the symbol “PTU.RT”. Trading of the Rights is expected to continue until 12:00 noon (Toronto time) on the Rights Expiry Date.
A Rights Offering circular, together with Rights Certificates, will be mailed to eligible shareholders on or after the Record Date. Registered shareholders wishing to exercise their Rights must forward the completed Rights Certificates, along with the applicable funds to Equity Financial Trust Company by the Rights Expiry Date. Shareholders who own their shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.
No U.S. Registration
The securities offered will not be or have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S of the Securities Act) or person in the United States, unless an exemption from such registration requirements is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States.
Purepoint Uranium Group Inc. is focused on the precision exploration of its eleven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with the three largest uranium producers in the world, Cameco Corporation, AREVA and Rio Tinto. 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.
This press release contains forward-looking statements, which reflect the Company’s current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company’s Rights Offering Circular for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.
For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO