November 5, 2009 – Purepoint Uranium Group Inc. (TSX-V:PTU) is pleased to announce that it has arranged a private placement of 5,000,000 units (“Units“) at a price of $0.20 per Unit for gross proceeds of $1,000,000 to a group of investors including MineralFields Group. Each Unit will consist of one flow-through common share of Purepoint and one-half of a warrant (“Warrant“). Each whole Warrant will entitle its holder to acquire one non-flow-through common share of Purepoint for a period of 24 months from the date of issuance, at a price of $0.25 per share during the first 12 months and $0.30 per share during the second 12 months. All securities issued under this private placement are subject to resale restrictions until March 7, 2010.
The net proceeds of this private placement will be used to further advance Purepoint’s uranium exploration projects in Saskatchewan. Canadian exploration expenses incurred using the proceeds of the private placement will be renounced to the purchasers of the flow-through common shares in accordance with applicable law.
The private placement was brokered by First Canadian Securities®, a division of Limited Market Dealer Inc. For its services, First Canadian received a cash fee of 5% of the gross proceeds of the offering, as well as broker’s options to acquire a number of units (“Broker’s Units“) equal to 5% of the number of Units sold under the offering. Each Broker’s Unit will entitle its holder to acquire one non-flow-through common share of Purepoint and one-half of a Warrant for a period of 24 months from the date of issuance, at a price of $0.20 per Broker’s Unit
“We are very pleased to be entering into this relationship with MineralFields Group”, said Christopher Frostad, President and CEO of Purepoint. “This is an important milestone in the growth of Purepoint Uranium Group Inc. and we look forward to working with MineralFields Group as we develop our holdings in the Saskatchewan region.”
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its eight 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.
About MineralFields, Pathway and First Canadian Securities®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.
Disclosure regarding forward-looking statements
Note: 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 Corporation. These risks and uncertainties could cause actual results and the Corporation’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. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
For further information please contact:
Chris Frostad, President and CEO
Purepoint Uranium Group Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.