/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
TORONTO, Dec. 18, 2020 /CNW/ - Purepoint Uranium
Group Inc. (TSXV: PTU) ("Purepoint" or the "Company")
is pleased to announce the closing of its non-brokered private
placement (the "Private Placement") previously announced on
December 1, 2020. In connection
with the closing, the Company issued 30,170,000 flow-through units
("Flow-Through Units") and 8,338,000 hard-dollar units
("Common Share Units") both at a price of $0.05 per unit for aggregate gross proceeds of
$1,925,400. 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 Common Share Unit consists 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 is
subject to final acceptance by the TSX Venture Exchange of the
Private Placement.
In connection with the closing of the private placement, the
Company paid certain finders' fees consisting of, in aggregate,
$57,060 in cash and 1,214,400
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 $0.08 per share for a period of 24 months after
the closing date.
The net proceeds of the Private Placement of Flow-Through Units
will be used to advance the Company's Hook Lake exploration program
in Saskatchewan and the net
proceeds of the Private Placement of Common Share Units will be
used for the Company's working capital. All securities issued in
connection with the closing of the Private Placement are subject to
a four-month hold period pursuant to the applicable securities laws
with an expiry date of April 18,
2021.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of its ten 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.
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.
SOURCE Purepoint Uranium Group Inc.
