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Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to announce that it has completed a private placement of 2,272,727 units (“Units”) at a price of $0.22 per Unit for gross proceeds of $500,000 to a group of investors including MineralFields Group. Each Unit will consist of one flow-through common share of Purepoint and one-half of a warrant (“Warrant”). Each whole Warrant will entitle its holder to acquire one non-flow-through common share of Purepoint for a period of 24 months from the date of issuance, at a price of $0.30 per share during the first 12 months and $0.35 per share during the second 12 months. All securities issued under this private placement are subject to resale restrictions until October 4, 2011.
The net proceeds of this private placement will be used to further advance Purepoint’s uranium exploration projects in Saskatchewan. Canadian exploration expenses incurred using the proceeds of the private placement will be renounced to the purchasers of the flow-through common shares in accordance with applicable law.
The private placement was brokered by First Canadian Securities(R), a division of Limited Market Dealer Inc. For its services, First Canadian received a cash fee of 5% of the gross proceeds of the offering, as well as broker’s options to acquire a number of units (“Broker’s Units”) equal to 5% of the number of Units sold under the offering. Each Broker’s Unit will entitle its holder to acquire one non-flow-through common share of Purepoint and one-half of a Warrant for a period of 24 months from the date of issuance, at a price of $0.22 per Broker’s Unit.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of its thirteen 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.
Read the full news release here.
