TORONTO, Dec. 19,
2024 /CNW/ - IsoEnergy Ltd. (TSX: ISO) (OTCQX:
ISENF) ("IsoEnergy") and Purepoint Uranium Group Inc. (TSXV:
PTU) (OTCQB: PTUUF) ("Purepoint") are pleased to announce the
successful implementation of their previously announced joint
venture (the "Joint Venture") (see press release dated October 22, 2024), consolidating 10 uranium
projects spanning over 98,000 hectares in the eastern Athabasca Basin, Saskatchewan (Figure 1). This strategic
collaboration strengthens both companies' efforts to advance
high-potential uranium assets in one of the world's premier
uranium-producing regions.
The joint venture establishes an initial ownership structure of
60% by IsoEnergy and 40% by Purepoint, with the option to adjust to
a 50/50 split through the exercise of put/call options (the
"Put/Call Option") pursuant to which 10% of IsoEnergy's initial
participation interest may be transferred to Purepoint in exchange
for 4,000,000 common shares of Purepoint (the "PTU Shares"). The
Put/Call Option is exercisable within six months of the Joint
Venture's formation, with the exercise of one option resulting in
the expiry of the other. Following completion of the Put/Call
Option period, IsoEnergy will hold a further option to purchase an
additional 1% interest from Purepoint for $2
million, giving IsoEnergy a 51% participation interest and
Purepoint a 49% participation interest. This option expires on the
earlier of February 28, 2026, or 60
days after a material uranium discovery. The ownership interests of
each company are subject to standard dilution, with any
participation interest that is reduced to 10% or less being
automatically exchanged for a 2% net smelter royalty (NSR) on the
Joint Venture properties.
The Joint Venture brings together a complementary portfolio of
highly prospective properties strategically positioned along the
Larocque Trend, a region renowned for high-grade uranium
discoveries such as IsoEnergy's Hurricane Deposit (Figure 2).
Subject to the terms of the Joint Venture agreement, Purepoint will
serve as operator during the exploration phase, while IsoEnergy
will assume operational control as the projects advance to
pre-development stages. Work programs across the joint portfolio
are expected to commence in the near future.
Philip Williams, CEO and Director
of IsoEnergy, commented, "This partnership allows us to advance a
promising portfolio of uranium projects while maintaining our focus
on IsoEnergy's core development assets. By working alongside
Purepoint, a highly experienced operator in the Athabasca Basin, we ensure these projects
receive the dedicated attention and resources needed to unlock
their full potential."
Chris Frostad, President and CEO
of Purepoint, added, "Our strategy of partnering with the strongest
players in the uranium sector ensures that our most prospective
projects, like those within this joint venture, are supported by a
secure and sustainable source of funding. This collaboration not
only validates the potential of these assets but also aligns with
our commitment to advance them responsibly and efficiently."
Early Warning Disclosure
In connection with the formation of the Joint Venture, IsoEnergy
is deemed to have acquired beneficial ownership of the 4,000,000
PTU Shares issuable upon exercise of the Put/Call Option pursuant
to applicable Canadian securities laws. Prior to the implementation
of the Joint Venture, IsoEnergy beneficially owned an aggregate of
3,333,334 PTU Shares and 3,333,334 warrants ("PTU
Warrants"), representing approximately 5.81% of the issued and
outstanding PTU Shares on a non-diluted basis, and approximately
10.98% of the issued and outstanding PTU Shares on a partially
diluted basis, assuming the exercise of the PTU Warrants held by
IsoEnergy. Following implementation of the Joint Venture, IsoEnergy
beneficially owns an aggregate of 7,333,334 PTU Shares and
3,333,334 PTU Warrants, assuming the exercise of the Put/Call
Option, representing approximately 11.94% of the issued and
outstanding PTU Shares on a non-diluted basis, and approximately
16.48% of the issued and outstanding PTU Shares on a partially
diluted basis, assuming the exercise of the PTU Warrants held by
IsoEnergy.
While IsoEnergy currently has no plans or intentions with
respect to the Purepoint securities, IsoEnergy may develop such
plans or intentions in the future and, at such time, may from time
to time acquire additional securities, dispose of some or all of
the existing or additional securities or may continue to hold the
PTU Shares, PTU Warrants or other securities of Purepoint based on
market conditions, general economic and industry conditions,
trading prices of Purepoint's securities, Purepoint's business,
financial condition and prospects and/or other relevant
factors.
A copy of the early warning report to be filed by IsoEnergy will
be available under Purepoint's profile on SEDAR+ at
www.sedarplus.ca or by contacting Graham du Preez, Chief Financial
Officer of IsoEnergy, at 306-373-6399. IsoEnergy's head office is
located at 217 Queen St. West, Suite
401, Toronto, Ontario, M5V
0R2.
Qualified Person Statement
The scientific and technical information contained in this news
release relating to IsoEnergy was reviewed and approved by Dr.
Dan Brisbin, P.Geo., IsoEnergy's
Vice President, Exploration, who is a "Qualified Person" (as
defined in NI 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101")).
For additional information with respect to the current mineral
resource estimate for IsoEnergy's Hurricane Deposit, please refer
to the Technical Report prepared in accordance with NI 43-101
entitled "Technical Report on the Larocque East Project,
Northern Saskatchewan, Canada"
dated August 4, 2022, available under
IsoEnergy's profile at www.sedarplus.ca.
About IsoEnergy Ltd.
IsoEnergy is a leading, globally diversified uranium company with
substantial current and historical mineral resources in top uranium
mining jurisdictions of Canada,
the U.S. and Australia at varying
stages of development, providing near-, medium- and long-term
leverage to rising uranium prices. IsoEnergy is currently advancing
its Larocque East project in
Canada's Athabasca basin, which is home to the
Hurricane deposit, boasting the world's highest-grade indicated
uranium mineral resource.
IsoEnergy also holds a portfolio of permitted past-producing,
conventional uranium and vanadium mines in Utah with a toll milling arrangement in place
with Energy Fuels. These mines are currently on standby, ready for
rapid restart as market conditions permit, positioning IsoEnergy as
a near-term uranium producer.
About Purepoint Uranium Group Inc.
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) is a
focused explorer with a dynamic portfolio of advanced projects
within the renowned Athabasca
Basin in Canada. The most
prospective projects are actively operated on behalf of
partnerships with industry leaders including Cameco Corporation,
Orano Canada Inc. and IsoEnergy Ltd.
Additionally, the Company holds a promising VHMS project
currently optioned to and strategically positioned adjacent to and
on trend with Foran Corporation's McIlvena Bay project. Through a
robust and proactive exploration strategy, Purepoint is solidifying
its position as a leading explorer in one of the globe's most
significant uranium districts.
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 "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". This forward-looking
information may relate to the Joint Venture, including statements
with respect to the anticipated benefits of the Joint Venture to
the parties; the expected ownership interests of IsoEnergy and
Purepoint in the Joint Venture; the prospects of each company's
respective projects, including mineralization of each project; the
potential for, success of and anticipated timing of commencement of
future exploration and development of the Joint Venture
projects; IsoEnergy's expectations with respect to the sale
or purchase or sale of Purepoint securities shares in the future;
and any other activities, events or developments that the
companies expect or anticipate will or may occur in the
future.
Forward-looking statements are necessarily based upon a
number of assumptions that, while considered reasonable by
management at the time, are inherently subject to business, market
and economic risks, uncertainties and contingencies that may cause
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
statements. Such assumptions include, but are not limited to, the
accuracy of management's assessment of the effects of the
successful completion of the Joint Venture and that the anticipated
benefits of the Joint Venture will be realized; the
anticipated mineralization of IsoEnergy's and Purepoint's projects
being consistent with expectations and the potential benefits from
such projects and any upside from such projects; the price
of uranium; that general business and economic conditions will not
change in a materially adverse manner; that financing will be
available if and when needed and on reasonable terms; and that
third party contractors, equipment and supplies and governmental
and other approvals required to conduct the Joint Venture's planned
activities will be available on reasonable terms and in a timely
manner. Although each of IsoEnergy and Purepoint have attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information.
Such statements represent the current views of IsoEnergy and
Purepoint with respect to future events and are necessarily based
upon a number of assumptions and estimates that, while considered
reasonable by IsoEnergy and Purepoint, are inherently subject to
significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Risks and uncertainties
include, but are not limited to the following: the inability of the
parties to realize the benefits anticipated from the Joint Venture
and the timing to realize such benefits; changes to IsoEnergy's
and/or Purepoint's current and future business plans and the
strategic alternatives available thereto; growth prospects and
outlook of IsoEnergy's and Purepoint's business; regulatory
determinations and delays; stock market conditions generally;
demand, supply and pricing for uranium; and general economic and
political conditions in Canada,
the United States and other
jurisdictions where the applicable party conducts business. Other
factors which could materially affect such forward-looking
information are described in the risk factors in each of
IsoEnergy's and Purepoint's most recent annual management's
discussion and analyses or annual information forms and IsoEnergy's
and Purepoint's other filings with the Canadian securities
regulators which are available, respectively, on
each company's profile on SEDAR+ at www.sedarplus.ca. IsoEnergy and
Purepoint do not undertake to update any forward-looking
information, except in accordance with applicable securities
laws.
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SOURCE IsoEnergy Ltd.
