Unigold Inc. (TSX-V:UGD, OTCQX:UGDIF) said it has closed a non-brokered private placement of 13,750,000 units of the company at a price of $0.08 each for gross proceeds of $1,100,000.
The company said the proceeds from the offering will be used to fund the continued exploration and development of its Neita Concession in the Dominican Republic, and for general working capital purposes.
Each unit in the placement consists of one common share of the company and one-half of one common share purchase warrant.
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Each whole warrant will entitle the holder thereof 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, which 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 per common share for more than 20 consecutive trading days.
No finders' fees were paid in connection with this closing of the offering.
The securities issued under the private placement are subject to a four-month hold period until March 1, 2023. The offering is subject to final acceptance of the TSX Venture Exchange.
The securities offered have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
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.
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. The company 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.
Unigold 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. The company has been concentrating on the Candelones mineralization and is moving to bring these deposits into production.
Contact the author at jon.hopkins@proactiveinvestors.com