Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

March 09, 2007 11:46 ET

Purepoint Uranium Group Inc. Closes First Tranche of Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 9, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to confirm the closing of the first tranche of the private placement of units and flow-through common shares announced on February 8, 2007, with a syndicate of agents led by Blackmont Capital Inc. and CIBC World Markets Inc., and including Loewen, Ondaatje, McCutcheon Limited. The first tranche raised gross proceeds of $13,665,255 consisting of (i) 3,438,000 units at a price of $1.45 per unit and (ii) 5,260,700 flow-through common shares at a price of $1.65 per flow-through share.

Each unit comprises one common share and one half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one common share at an exercise price of $2.00 per share for a period of 24 months from the closing date.

The gross proceeds of the offering will be spent on general corporate purposes of the company including capital expenditures.

Blackmont Capital Inc., CIBC World Markets Inc. and Loewen, Ondaatje, McCutcheon Limited received a cash fee of 6% of the gross proceeds raised from the offering, as well as broker's warrants, exercisable for a period of 12 months following closing, to purchase a number of common shares equal to 7% of the number of units and flow-through shares issued in the offering at the unit price.

All of the securities issued in connection with the private placement are restricted from resale before July 10, 2007.

The company may carry out further closings up to the maximum number of units and flow-through common shares offered under this offering.

Purepoint Uranium Group Inc. is focused on the precision exploration of its nine highly prospective projects in the Canadian Athabasca Basin. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing its large portfolio of multiple drill targets in the world's richest uranium region.

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 Corporation. These risks and uncertainties could cause actual results and the Corporation'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 Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

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