- Unigold (TSXV:UGD) has increased its non-brokered private placement to roughly C$6 million due to oversubscribed demand
- On May 27, the company announced an original placement of up to 12 million units at 18 cents each for gross proceeds of up to $2.16 million
- This has now been increased to 33.33 million also at a price of 18 cents each
- Each unit will include one common share in the company and half of one common share purchase warrant
- The proceeds will be used to fund exploration and development activities at the company’s Neita Concession in the Dominican Republic
- Unigold (UGD) is currently up 2.44 per cent and is trading at 21 cents per share
Unigold (TSXV:UGD) has increased its non-brokered private placement to roughly C$6 million due to oversubscribed demand.
The company’s original private placement was announced on May 27, 2020, under which it planned to issue up to 12 million units at a price of 18 cents each for gross proceeds of $2.16 million.
However, following significant interest, Unigold has now increased the placement to up to 33.33 million units, also at a price of 18 cents each. These units will consist of one common share in the capital of the company, as well as half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of 30 cents, and will be exercisable over a period of two years.
That said, should Unigold’s common shares trade at a price higher than 60 cents for a period of 20 or more consecutive days of trading, the expiry date of the warrants may be brought forward.
The proceeds raised under the placement will be used to fund exploration and development activities at the company’s Neita Concession in the Dominican Republic. A portion may also be used for general working capital purposes.
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 currently up 2.44 per cent and is trading at 21 cents per share at 11:45am EDT.
