TORONTO, ONTARIO--(Marketwired - Dec. 6, 2013) -
Not for Dissemination in the United States or Through U.S. Newswire Services
Purepoint Uranium Group Inc. (TSX VENTURE:PTU) (the "Company"), is pleased to announce the closing of the first tranche of the non-brokered private placement announced on December 3, 2013, for gross proceeds of $303,535. The Company issued 5,518,81 flow-through units (the "Units") at a price of $0.055 per Unit. Each 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 24 months from the date of issuance.
In connection with the closing of the first tranche of the private placement, the Company paid finders' fees consisting of $22,602.80 (plus applicable taxes) in cash and issued 410,960 non-transferable compensation options to certain finders. Each compensation option 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 24 months after the closing date.
All securities issued in connection with the private placement are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of April 7, 2014. The net proceeds of the private placement will be used for the exploration program of the Company to be conducted to advance the Company's eleven uranium projects located in the Province of Saskatchewan.
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 ten 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.
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.