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Purepoint Uranium Group Inc. Closes Final Tranche of $2 Million Private Placement
Toronto, Ontario--(Newsfile Corp. - May 6, 2016) - Purepoint Uranium Group Inc. (TSXV: PTU) (t...
About this update from Purepoint Uranium Group Inc.
[{"type":"text","content":"Purepoint Uranium Group Inc. Closes Final Tranche of $2 Million Private PlacementToronto, Ontario--(Newsfile Corp. - May 6, 2016) - Purepoint Uranium Group Inc. (TSXV: PTU) (the \"Company\") is pleased to announce the closing of the final tranche of the previously announced non-brokered private placement for gross proceeds of $244,700. Together with the first two tranches of the private placement closed in April, the Company has raised, in aggregate, $1,995,750. In connection with the closing of the final tranche of the private placement, the Company issued 2,406,667 common share units at a price of $0.075 per unit and 755,294 flow-through units at a price of $0.085 per unit. Each common share unit consists of one common share in the capital of the Company and one common share purchase warrant. 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 $0.10 per share for a period of 36 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement. Borys Chabursky, a director of the Company, participated in the final tranche of the private placement as an investor and subscribed 666,667 Units for $50,000. By virtue of such participation by the insider, the private placement constitutes a related party transaction under applicable securities laws. Neither independent valuation nor minority shareholder approval was required to complete the related party transaction because the Company relied on exemptions from both requirements under applicable securities laws. The net proceeds of the private placement will be used to advance the Company's Hook Lake exploration program in Saskatchewan and for working capital purposes. In connection with the closing of the final tranche of the private placement, the Company paid Foster & Associates and David O'Brien finders' fees consisting of, in aggregate, $8,029 in cash and 102,200 non-transferable compensation warrants. Each compensation warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period ...