Published: July 14, 2011
TORONTO, Ontario, July 14, 2011: Unigold Inc. (UGD-TSX.V) is pleased to announce that it completed the sale of its remaining investment in Asset Backed Commercial Paper restructured notes ("restructured notes") for gross proceeds of $7,414,553. After retiring the bank debt collateralized by the restructured notes, Unigold added approximately $1.3-million to its treasury and improved its working capital by approximately $6.0-million.
Unigold took advantage of a developing market for the restructured notes to make the sale. In 2007 and 2008, Unigold made provisions totalling $5-million against the carrying value of its investment in the restructured notes to recognize the estimated decline in fair market value at that time. The value of the provision decreased in the second quarter when the restructured notes were re-measured at estimated fair market value using market quotes. A non-cash gain of approximately $2.4-million was recorded in Q2 as a result of the revaluation. Concurrent with the sale, Unigold repaid and terminated its credit facility.
The July 12th sale followed previous sales in the second quarter of its US$ denominated restructured notes for net proceeds of approximately $180,000.About Unigold Inc.
Unigold is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in the Dominican Republic which is highly prospective for gold mineralization.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. John Green, CFO (+1 (416) 866-8157)
Web site: www.unigoldinc.com
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