/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
TORONTO, April 7, 2021 /CNW/ - Purepoint Uranium
Group Inc. (TSXV: PTU) ("Purepoint" or the "Company")
announced the closing of its brokered private placement (the
"Private Placement") previously announced on March 17, 2021 with Red Cloud Securities Inc.
("Red Cloud") pursuant to
which Red Cloud acted as lead agent
and sole bookrunner. In connection with the closing, the Company
issued 20,404,095 flow-through units ("FT Units") at a price
of $0.105 per unit and 31,750,778
hard-dollar units ("Units" together with the FT Units are
hereinafter referred to as the "Offered Securities") at a
price of $0.09 per unit for aggregate
gross proceeds of $5,000,000.
Each Unit consists of one common share in the capital of the
Company and one common share purchase warrant (each, a
"Warrant"). Each FT Unit consists of one common share
in the capital of the Company (each, a "Flow-Through Share")
issued on a "flow through" basis pursuant to the Income Tax
Act (Canada) and one half of
one Warrant. Each Warrant entitles its holder to purchase one
common share in the capital of the Company at an exercise price of
$0.13 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 has paid Red Cloud and a
member of the selling group cash commissions in the aggregate
amount of $342,650, and issued to
Red Cloud 3,569,174
non-transferrable compensation warrants ("Broker Warrants")
with each Broker Warrant exercisable to purchase one common share
of the Company at a price of C$0.105
per share for a term of 24 months following the Closing Date.
The net proceeds raised from the sale of Units will be used for
the exploration and advancement of the Company's projects in the
Athabasca Basin in Saskatchewan and for general working capital
purposes. The gross Proceeds from the sale of Flow-Through Shares
will be used to incur "Canadian exploration expenses" as defined in
subsection 66.1(6) of the Income Tax Act and "flow through mining
expenditures" as defined in subsection 127(9) of the Income Tax
Act. Such proceeds will be renounced to the subscribers with an
effective date not later than December 31,
2021, in the aggregate amount of not less than the total
amount of gross proceeds raised from the issue of Flow-Through
Shares. 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
August 8, 2021.
About Purepoint
Purepoint Uranium Group Inc. actively operates an exploration
pipeline of 12 advanced projects in Canada's Athabasca Basin, the world's richest uranium
region. 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 Project is on trend with recent high-grade uranium discoveries
including Fission Uranium's Triple R Deposit and NexGen's Arrow
Deposit and encompasses its own Spitfire discovery (53.3%
U3O8 over 1.3m including
10m interval of 10.3% U3O8). Together
with its flagship project, the Company's projects stretch across
approximately 175,000 hectares of claims throughout the Athabasca
Basin. These claims host over 20 distinct and well-defined
drill target areas with advanced geophysical surveys completed, and
in some cases, have had first pass drilling performed.
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.
