- Unigold (TSXV:UGD) has successfully completed its previously announced private placement for gross proceeds of C$6 million
- The company issued a total of 33.33 million units at a price of $0.18 each, consisting of one common share and half of one common share purchase warrant
- Each whole warrant is exercisable at a price of $0.30 and at any time prior to June 23, 2021
- The proceeds raised under the placement will be used to fund exploration and development expenses at the company’s Neita Concession in the Dominican Republic
- Unigold (UGD) is down 1.33 per cent and is trading at 37 cents per share at 2:06pm EDT
Unigold (TSXV:UGD) has successfully completed its previously announced private placement for gross proceeds of C$6 million.
Pursuant to a release dated May 27, 2020, the company had originally planned to issue a total of 12 million units at a price of $0.18 each for an aggregate amount of $2.16 million.
However, due to a significant amount of interest from potential subscribers, Unigold increased the size of its placement on June 3. As such, a total of 33.33 million units were issued.
These units are comprised of one common share in the capital of the company and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.30, exercisable at any time until June 23, 2021.
In connection with the placement, Unigold has paid $327,154 in cash and issued 1.94 million warrants to certain finders parties. Each warrant is exercisable at a price of $0.18 until June 23, 2021.
Notably, Canadian billionaire Eric Sprott, an existing investor in Unigold with a shareholding of roughly 10 per cent, subscribed for a total of 3.9 million units.
The asset management founder has executed a long string of gold and silver related investments over the last few months, solidifying an already extensive precious resource portfolio.
Unigold intends to use the proceeds raised under the placement to undertake exploration and development activities at its Neita Concession in the Dominican Republic.
Located approximately 200 kilometres northwest of Santo Domingo, the Neita Concession covers a total of 22,616 hectares. The property was previously a government Fiscal Reserve until it was granted to Unigold in 2002.
The company considers the Neita Concession to be a district play, hosting a variety of mineral occurrences and deposit types.
Sitting on a historical belt of volcanic sequences, the region is host to several existing mines and substantial exploration projects, including Pueblo Viejo, which has a proven and probable reserve of 25.3 million ounces of gold.
Unigold (UGD) is down 1.33 per cent and is trading at 37 cents per share at 2:06pm EDT.