Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

December 19, 2011 11:25 ET

Purepoint Uranium Group Closes $1,060,000 Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2011) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) (the "Company" or "Purepoint"), subject to TSX Venture Exchange approval, completed its previously announced, non-brokered private placement on December 16, 2011 for aggregate proceeds of $1,060,011.59. The Company issued 9,636,469 flow-through units ("Units") at a price of $0.11 per Unit, each Unit consisting of one flow-through common share and one common share purchase warrant in the capital of the Company, with each warrant to entitle the holder to purchase one additional common share at a price of $0.18 for a period of two years from closing.

In connection with the private placement, the Company paid finders' fees of $56,700.11 to certain finders (the "Finders). The Company also issued 571,140 non-transferable compensation options ("Compensation Options") to the Finders. Each Compensation Option is exercisable into one non-flow-through common share at $0.11 per share. Each Compensation Option will expire 18 months after the closing date.

The net proceeds of this private placement will be used to further advance Purepoint's twelve uranium exploration projects and for general corporate purposes.

Purepoint Uranium Group Inc. is focused on the precision exploration of its twelve projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with the three largest uranium producers in the world, Cameco Corporation, 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.

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.

Disclosure regarding forward-looking statements

Note: 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. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Purepoint Uranium Group Inc.
    Chris Frostad
    President and CEO
    (416) 603-8368
    www.purepoint.ca