For Immediate Release – Not for Dissemination in the United States or through U.S. Newswire Services
Toronto, Ontario, May 6, 2016 – Purepoint Uranium Group Inc. (TSXV: PTU) (the “Company”) is pleased to announce the closing of the final tranche of the previously announced non-brokered private placement for gross proceeds of $244,700. Together with the first two tranches of the private placement closed in April, the Company has raised, in aggregate, $1,995,750.
In connection with the closing of the final tranche of the private placement, the Company issued 2,406,667 common share units at a price of $0.075 per unit and 755,294 flow-through units at a price of $0.085 per unit. Each common share unit consists of one common share in the capital of the Company and one common share purchase warrant. Each flow-through unit consists of one common share in the capital of the Company 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 $0.10 per share for a period of 36 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement.
Borys Chabursky, a director of the Company, participated in the final tranche of the private placement as an investor and subscribed 666,667 Units for $50,000. By virtue of such participation by the insider, the private placement constitutes a related party transaction under applicable securities laws. Neither independent valuation nor minority shareholder approval was required to complete the related party transaction because the Company relied on exemptions from both requirements under applicable securities laws.
The net proceeds of the private placement will be used to advance the Company’s Hook Lake exploration program in Saskatchewan and for working capital purposes.
In connection with the closing of the final tranche of the private placement, the Company paid Foster & Associates and David O’Brien finders’ fees consisting of, in aggregate, $8,029 in cash and 102,200 non-transferable compensation warrants. Each compensation warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period of 36 months after the closing date.
All securities issued in connection with the second 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 September 6, 2016.
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.
Disclosure regarding forward-looking statements
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 Company. These risks and uncertainties could cause actual results and the Company’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.
For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
www.purepoint.ca
