TORONTO, ONTARIO--(Marketwired - Dec. 24, 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 second tranche of the non-brokered private placement announced on December 3, 2013, for gross proceeds of $441,949. The Company issued 8,035,436 flow-through units at a price of $0.055 per unit. 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 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. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement.
In connection with the closing of the second tranche of the private placement, the Company paid finders' fees consisting of $35,355.92 (plus applicable taxes) in cash and issued 642,834 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.
Together with the first tranche closing of the private placement announced on December 6, 2013, the Company issued a total of 13,554,254 flow-through units under the private placement for aggregate gross proceeds of $745,484, paid finders' commission in an aggregate amount of $57,958.72 and issued 1,053,794 compensation options to certain finders.
Mr. James B.C. Doak, a director of the Company, participated in the private placement by subscribing 181,818 flow through units for $10,000. By virtue of such participation by the insider, the private placement constitutes a related party transaction under applicable securities laws. Neither independent valuation nor minority shareholder approval was required to complete the related party transaction because the Company relied on exemptions from both requirements under applicable securities laws.
The Company also announces its intention to further raise the ceiling for the private placement from $750,000 to $850,000. Up to 15,454,545 flow-through units at a price of $0.055 per unit are issuable pursuant to the private placement. The Company expects to close the last tranche of the private placement on or before December 31, 2013.
All securities issued in connection with the second tranche of the private placement are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of April 24, 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.
About Purepoint Uranium Group Inc.
Purepoint Uranium Group Inc. is focused on the precision exploration of its eleven 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.