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TORONTO, Dec. 15, 2020 /CNW/ - Purepoint Uranium
Group Inc. (TSXV: PTU) (the "Company") announced today that it has
increased the size of offering of its previously announced
$1,250,000 Private Placement
(December 8, 2020) to $1,925,400. Due to the recent rally in the
uranium sector, the Company will not be accepting any further
subscriptions.
The Company is now offering up to 30,170,000 Flow-Through units
("Flow-Through Units") and 8,338,000 Common Share units
("Common Share Units") both on a private placement basis at
a price of $0.05 per Unit. Each
Flow-Through Unit is comprised of one common share in the capital
of the Company to be issued on a "flow through" basis pursuant to
the Income Tax Act (Canada) and
one common share purchase warrant. Each Common Share Unit is
comprised of one common share in the capital of the Company 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 $0.08 per
share for a period of 24 months from the date of issuance.
The closing of the Private Placements is expected to be on or
about December 17, 2020. The net
proceeds of the Flow Through Private Placement will be used to
advance the Company's Hook Lake exploration program in Saskatchewan and the net proceeds of the Hard
Dollar Private Placement will be used for the Company's working
capital.
Hook Lake JV Project
The Hook Lake JV project is owned jointly by Cameco Corp.
(39.5%), Orano Canada Inc. (39.5%) and Purepoint Uranium Group Inc.
(21%) as operator and consists of nine claims totaling 28,598
hectares situated in the southwestern Athabasca Basin. The Hook Lake JV is
considered one of the highest quality uranium exploration projects
in the Athabasca Basin due to its
location along the prospective Patterson
Lake trend and the relatively shallow depth to the
unconformity.
Current exploration is targeting the Patterson Lake Corridor
that hosts Fission's Triple R Deposit (indicated mineral resource
87,760,000 lbs U3O8 at an average grade of 1.82% U3O8 –
www.fissionuranium.com), NexGen Energy's Arrow Deposit (indicated
mineral resource 256,600,000 lbs U3O8 at an average grade of
4.03% - www.nexgenenergy.ca) and the Spitfire Discovery by the Hook
Lake JV. The foregoing mineral resource disclosure is information
about the properties adjacent Company's property and does not imply
that the Company will obtain similar information from its own
property.
The upcoming Hook Lake exploration program will focus on the
Sabre Target Area, located on strike and due north of its own
Spitfire Deposit. Recent geophysical work successfully identified
new drill targets along the 3.5km of "W" conductor strike length.
The "W" conductor within the Sabre Target Area now appears as two
continuous parallel conductors of variable strength associated with
numerous sub-parallel weaker conductors.
More information about the Sabre Zone can be viewed on the
Company's 5-minute video: https://youtu.be/KGZwvRnRHSo.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of its six projects in the Canadian Athabasca Basin,
the world's richest uranium region. Established in the Athabasca Basin well before the initial
resurgence in uranium earlier last decade, Purepoint's flagship
project is the Hook Lake Project, a joint venture with two of the
largest uranium suppliers in the world, Cameco Corporation and
Orano Canada Inc. The Hook Lake JV is on trend with recent
high-grade uranium discoveries including Fission Uranium's Triple R
Deposit, NexGen's Arrow Deposit and Purepoint's Spitfire
discovery.
Scott Frostad BSc, MASc, PGeo,
Purepoint's Vice President, Exploration, is the Qualified
Person responsible for technical content of this release.
Neither the Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this Press
release.
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.
SOURCE Purepoint Uranium Group Inc.
