Purepoint Uranium Group Inc. Raises Ceiling for Non-Brokered Private Placement Financing
TORONTO, ONTARIO--(Marketwired - April 26, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Purepoint Uranium Group Inc. (TSX VENTURE:PTU) (the "Company") announces its intention to raise the ceiling for the non-brokered private placement previously announced on April 15, 2016 (the "Offering") to, in aggregate, $2,000,000.
Up to 21,333,333 common share units (the "Units") at a price of $0.075 per Unit and 4,705,882 flow-through units (the "Flow-Through Units") at a price of $0.085 per Flow-Through Unit are issuable pursuant to the Offering. 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 private placement is ongoing and the Company expects to close the private placement in a number of tranches on or prior to May 16, 2016 with the first tranche of $611,250 already closed on April 15, 2016.
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.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
About Purepoint Uranium Group Inc.
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 Corp., 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.
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.
Contact
Purepoint Uranium Group Inc.
Chris Frostad
President & CEO
(416) 603-8368, Ext. 200
cfrostad@purepoint.ca