/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
TORONTO, Dec. 31, 2019 /CNW/ - Purepoint Uranium
Group Inc. (TSXV: PTU) ("Purepoint" or the "Company")
closes the final tranche of its non-brokered private placement (the
"Private Placement") previously announced on December 10, 2019. In connection with the final
tranche closing, the Company issued 769,232 flow-through units
("Flow-Through Units") at a price of $0.065 per unit for aggregate gross proceeds of
$50,000. 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 $0.08 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.
Together with the first tranche of the Private Placement, the
Company issued a total of 8,492,378 Flow Through Units for
aggregate gross proceeds of $552,004.57.
The net proceeds of the Private Placement will be used to
advance the Company's Hook Lake exploration program in Saskatchewan. All securities issued in
connection with the final tranche closing of the Private Placement
are subject to a four-month hold period pursuant to the applicable
securities laws with an expiry date of May
1, 2020.
Hook Lake JV Project
The Hook Lake JV project is owned jointly by Cameco Corp.
(39.5%), Orano Canada Inc. (39.5%) and Purepoint Uranium Group Inc.
(21%) as operator and consists of nine claims totaling 28,598
hectares situated in the southwestern Athabasca Basin. The Hook Lake JV is
considered one of the highest quality uranium exploration projects
in the Athabasca Basin due to its
location along the prospective Patterson
Lake trend and the relatively shallow depth to the
unconformity.
Current exploration is targeting the Patterson Lake Corridor
that hosts Fission's Triple R Deposit (indicated mineral resource
87,760,000 lbs U3O8 at an average grade of 1.82% U3O8 –
www.fissionuranium.com), NexGen Energy's Arrow Deposit (indicated
mineral resource 256,600,000 lbs U3O8 at an average grade of
4.03% – www.nexgenenergy.ca) and the Spitfire Discovery by
the Hook Lake JV. The foregoing mineral resource disclosure is
information about the properties adjacent Company's property and
does not imply that the Company will obtain similar information
from its own property.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of its ten 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 is on trend with recent
high-grade uranium discoveries including Fission Uranium's Triple R
Deposit, NexGen's Arrow Deposit and Purepoint's Spitfire
discovery.
Scott Frostad BSc, MASc, PGeo,
Purepoint's Vice President, Exploration, is the Qualified
Person responsible for technical content of this release.
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.