Published: November 07, 2011
TORONTO, Ontario, November 17, 2011: Unigold Inc. (TSXV: UGD) (the "Company") is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement. The Company issued 20,800,000 units of the Company (the "Units") at a price of $0.10 per Unit for aggregate gross proceeds of $2,080,000 (the "First Offering").
Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Company (the "Warrant Shares") at a price of $0.15 at any time until November 17, 2013.
In connection with their services in introducing subscribers to the Company, the Company will pay a cash finder's fees to PowerOne Capital Markets Limited and Stifel Nicolaus Canada Inc. (collectively, the "Finders") equal to 7% of the aggregate gross proceeds raised by the Company from subscribers introduced by such finders. Additionally, the Company will issue finder's warrants equal to up to 7% of the total number of Units sold under the Offering (the "Finder's Warrants") to the Finders in consideration for their efforts in introducing subscribers to the Company. Each Finder's Warrant entitles the holder to purchase one Common Share at an exercise price of $0.10 until the date which is 24 months from the closing of the Offering.
The net proceeds of the offering will be used by the Company (i) to conduct mineral exploration activities in respect of the Company's projects located in the Dominican Republic, and (ii) for general corporate purposes.
Completion of the Offering is subject to receipt by the Company of the final approval of the TSX Venture Exchange. All securities issued under or in connection with the Offering will be subject to a hold period in Canada until March 18, 2012.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.
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. Andrew Cheatle, President and CEO (+1 (416) 866-8157)
Web site: www.unigoldinc.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.