Purepoint Uranium raising $6 million from upsized financing

Purepoint Uranium Group Inc. [PTU-TSXV] has set the final size of its previously announced non-brokered flow-through private placement at $6.0 million. It said the book is fully subscribed and no further subscriptions will be accepted. The amount being raised has increased from earlier targets of $5.0 million and $3.0 million.

Purepoint brings a deep history of operating in Saskatchewan’s Athabasca Basin, a region that is best known as the world’s leading source of high-grade uranium, accounting for 20% of the world’s supply.

It has a portfolio of advanced projects that are operated on behalf of partnerships with industry leaders, including Cameco Corp. [CCO-TSX, CCJ-NYSE] Orano Canada Inc., and ISOEnergy Ltd. [ISO-TSX, ISOU NYSE American]. The company also holds a VHMS (volcanogenic massive sulphide) project that is option and adjacent to and on trend with Foran Mining Corp.’s [FOM-TSX, FMCXF-OTCQX] McIlvenna Bay project. The McIlvenna Bay property sits just 65 kilometres west of Flin Flon, Man., and is part of the world-class Flin Flon greenstone belt that extends from Snow Lake, Man., through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 kilometres.

In its latest press release, the company said the private placement will consist of the following;

• 8 million Saskatchewan flow-through units (SFT) priced at 65 cents each for gross proceeds of $2.5 million. Each SFT unit consists of one common share to be issued as a flow-through share and one common share purchase warrant.
• 47 national flow-through units (NFT) priced at 59 cents each for gross proceeds of $2.64 million, with each NFT unit consisting of one common share to be issued on a flow-through basis and one warrant.
• Up to 1.45 traditional flow-through units (TFT) priced at 59 cents each for gross proceeds of up to $856,943, with each TFT consisting of one common share to be issued as a flow-through share and one warrant.

Each warrant entitles its holder to purchase one common share of the company at an exercise price of 50 cents per common share for 24 months from the date of issuance.

Gross proceeds of the FT shares sold under the offering will be used for Canadian exploration expenses which qualify as a flow-through mining expenditure for exploration on the company’s properties in the Athabasca Basin.

On Tuesday, Purepoint shares rose 2.04% or $0.01 to 50 cents. The shares trade in a 52-week range of 58 cents and 17.5 cents. IsoEnergy and Purepoint recently announced that initial assays from the first two discovery drill holes completed at their joint venture Dorado project’s Nova Discovery in the Athabasca Basin have confirmed the presence of high-grade uranium mineralization of up to 5.4% U308. Follow-up drilling to extend the mineralized trend northeast is planned for the winter, when frozen ground enables land-based access.