/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
TORONTO, Dec. 17, 2018 /CNW/ - Purepoint Uranium Group
Inc. (TSXV: PTU) ("Purepoint" or the "Company") is
pleased to announce the closing of its non-brokered private
placement (the "Private Placement") previously announced on
December 12, 2018. The Private
Placement was oversubscribed for aggregate gross proceeds of
$877,930. In connection with the
Private Placement, the Company issued 9,754,778 flow-through units
("Flow-Through Units") at a price of $0.09 per unit. Each Flow-Through Unit
consists of one common share in the capital of the Company to be
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 $0.13 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.
"We are very pleased with the heightened interest in the
commodity right now which has demonstrated renewed strength and
upward momentum over the past 12 months." said Chris Frostad, President and CEO at
Purepoint. "We are equally pleased with the interest and
support in our upcoming Hook Lake program as we embark to advance
our discoveries in the Patterson corridor and start to explore
the neighboring Derkson corridor, where historic drilling in 1978
by SMDC first discovered uranium mineralization in this corner of
the Athabasca Basin."
In connection with the Private Placement, the Company paid
finders' fees consisting of $48,175.80 plus applicable taxes in cash and
issued 535,287 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
$0.13 per share for a period of 24
months after the date of issuance.
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 closing of the Private Placement are subject to
a four-month hold period pursuant to the applicable securities laws
with an expiry date of April 15,
2019.
About Purepoint Uranium Group Inc.
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 producers 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 and NexGen's Arrow deposit.
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.