UGD-V $5.7 million cash (as of March 31, '13). Also closes $5-million financing with IFC
June 5, 2013 - News Release
Further to the press release dated April 16, 2013, following the requisite disclosure period, Unigold Inc. has entered into a binding subscription agreement with International Finance Corp. (IFC), a member of the World Bank Group, confirming the investment by IFC of $5-million in securities of Unigold, as more particularly described below. "Unigold is pleased to welcome IFC as a shareholder and partner for the Neita project," said Andrew Cheatle, president and chief executive officer of Unigold. "We look forward to drawing upon IFC's expertise to help ensure that the progress at Neita follows global best practices for the mineral exploration industry, the environment and for working with local communities."
"We believe Unigold, IFC's first mining investment in the Dominican Republic, has the leadership and resources to make the Neita project a success," said Tom Butler, IFC global head for mining. "This investment aligns with our strategy to support projects with the potential to bring long-term economic benefits to developing countries."
IFC's support to the Neita project is expected to help promote good environmental and social standards in the Dominican Republic's mining sector and send a positive signal for future foreign direct investment in the country.
IFC has agreed to acquire 20 million units of Unigold in a private placement transaction. Each unit will be composed of one common share of Unigold and three-quarters of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of Unigold at an exercise price of 50 cents for a period of four years from the date of issue, subject to Unigold's right to accelerate the expiration of the warrants in certain circumstances.
The units will be issued at a price of 25 cents per unit, for gross proceeds to Unigold of $5-million. It is expected that upon the closing of the financing there will be 243,713,235 common shares outstanding. Immediately upon the closing of the financing, it is expected that IFC will hold 8.2 per cent of Unigold's outstanding common shares and approximately 13.5 per cent of the Unigold's outstanding common shares, assuming the exercise of all of the warrants to be held by IFC.
The closing of the issue and sale of the units is expected to occur in June, 2013. The unit shares, warrants and, if applicable, warrant shares will be subject to a four-month hold period in Canada.
We seek Safe Harbor. |
