NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Unigold Inc. (TSX-V:UGD) (the "Company")
is pleased to announce that it has entered into a letter of engagement with Dundee Securities Ltd. (the "Lead Underwriter") together with a syndicate of underwriters including Primary Capital Inc., Clarus Securities Inc., Casimir Capital Ltd. and PowerOne Capital Markets Limited (the "Underwriters") under which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 11,200,000 common shares of the Company (the "Shares") at a price of $0.45 per Share for total gross proceeds of $5,040,000 (the "Offering").
In connection with the Offering, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds raised under the Offering and that number of non-transferable broker warrants as is equal to 6.0% of the number of Units sold. Each Broker Warrant will be exercisable into one common share of the Company, for a period of 24 months from the Closing Date at a price of $0.45 per common share.
The Offering is scheduled to close on or about September 13, 2012. All securities issued will be subject to a four month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
The net proceeds will be used to advance the exploration and development of the Company's gold assets in the Dominican Republic and for general corporate purposes.
About Unigold Inc. - Discovering Gold in the Caribbean
Unigold is a growth-oriented junior natural resource company, focused primarily on exploring and developing its gold assets in the Dominican Republic - a country which is highly prospective for gold mineralization.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Andrew Cheatle
President and CEO
+1 (416) 866-8157
Neither the 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