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TORONTO, Oct. 22, 2020 /CNW/ - Purepoint Uranium
Group Inc. (TSXV: PTU) ("Purepoint" or the "Company")
closes its first tranche of its non-brokered private placement (the
"Private Placement") previously announced on October 13, 2020. The Private Placement was
subscribed for aggregate gross proceeds of $275,000. In connection with the Private
Placement, the Company issued 5,500,000 units at a price of
$0.05 per Unit. Each Unit consists of
one common share in the capital of the Company 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
$0.08 per share for a period of 24
months from the date of issuance.
In connection with the Private Placement, the Company paid
finders' fees consisting of $10,850
plus applicable taxes in cash and issued 217,000 non-transferrable
compensation warrants. Each compensation warrant entitles its
holder to purchase one common share in the capital of the Company
at an exercise price of $0.08 per
share for a period of 24 months after the date of issuance.
The net proceeds of the Private Placement will be used for
working capital purposes. 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 February 23,
2021.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of its projects in the Canadian Athabasca Basin, the
world's richest uranium region. Established in the Athabasca Basin well before the initial
resurgence in uranium earlier last decade, 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, NexGen's Arrow Deposit and the Hook Lake JV's
Spitfire discovery.
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.