Unigold Inc has announced a non-brokered private placement of up to 20,000,000 units of the company at a price of $0.08 each for gross proceeds of up to $1.6 million.
The company said the proceeds from the offering will be used to fund the continued exploration and development on its Neita Concession in the Dominican Republic, and for general working capital purposes.
Each unit in the private placement will consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of $0.30 until the date that is the earlier of one year following the date of issue, or 30 days after the date on which the company gives notice of acceleration.
READ: Unigold aims for feasibility study, ESIA and approved exploitation concession licence for Candelones during Q3 this year
The acceleration notice may be provided no earlier than four months and twenty-one days from the date of issue if the closing price of the common shares on a stock exchange in Canada is higher than $0.60 each for more than 20 consecutive trading days.
Finder's fees may be paid in connection with the completion of the offering in accordance with TSX Venture Exchange policies.
Closing of the offering may be completed in multiple tranches and is subject to certain closing conditions including, but not limited to, conditional approval from the TSX Venture Exchange and receipt of any other required regulatory approvals.
The securities being offered under the offering will be issued under applicable exemptions from the prospectus requirements under applicable securities laws and will be subject to a hold period that will expire four months and one day from the date of issue.
Unigold is a Canadian-based mineral exploration company. The multi-million ounce Candelones gold deposits are within the 100% owned Neita Fase II exploration concession located in Dajabon province, in the northwest part of the Dominican Republic.
The company has been active in the Dominican Republic since 2002 and remains the most active exploration company in the country. The Neita Fase II exploration concession is the largest single exploration concession covering volcanic rocks of the Cretaceous Tireo Formation.
This island arc terrain is host to Volcanogenic Massive Sulphide deposits, Intermediate and High Sulphidation Epithermal Systems and Copper-gold porphyry systems. Unigold has identified over 20 areas within the concession area that host surface expressions of gold systems.
Unigold has been concentrating on the Candelones mineralization and is moving to bring these deposits into production. In the third quarter of 2022, the company expects to deliver a feasibility study and a baseline environmental report for the Oxide portion of the Candelones deposit.
Unigold applied to convert a part of the Neita Fase II concession into an Exploitation Concession in late February 2022. The application has moved smoothly through various permitting stages and the company expects that a decision will be given on the application in the third quarter of 2022.
Contact the author at jon.hopkins@proactiveinvestors.com