Unigold Inc. is pleased to announce the closing of the previously announced financing with Maison Placements Canada Inc. (the “Agent”) to issue on a private placement basis 6,080,000 Units of the Company at a price of $0.30 per Unit for gross proceeds of $1,824,000. Each Unit consists of one common share and one-half of one warrant, with each whole warrant entitling the holder thereof to purchase one common share at any time for a period of 24 months following the closing date at a price of $0.45 for the first 12 months following the closing date
and thereafter for a further period of 12 months at a price of $0.55. The shares are subject to a four-month hold period from the date of issue.
For its services in connection with this offering, the Agent has been
paid a cash commission of $127,680, being seven percent of the gross proceeds of the offering, as well as 912,000 broker warrants which will ultimately entitle the Agent to purchase that number of common shares at a price of $0.30 per common share for a maximum period of two years from the date of closing.
The Company intends to use the net proceeds of the private placement to finance the exploration program in the Dominican Republic and for general corporate purposes. The hydraulic diamond drill and backhoe have arrived in the Dominican Republic and the Company expects that the trenching and diamond drilling on the Candelones, El Corozo and Montazo-Guano areas of the Neita property will commence by the end of October.
The Company is also pleased to announce that the Board of Directors has been enlarged from 7 to 8 members with the addition of Mr. Sheldon Inwentash. Mr. Inwentash is the Chairman and Chief Executive Officer of Pinetree Capital Corporation, a publicly traded company that specialises in funding emerging growth companies in the pre-production and commercialisation stages.
A total of 600,000 stock options at a price of $0.48 per share have been granted to certain of the directors, officers and employees of the Company.