TORONTO, June 24, 2020 (GLOBE NEWSWIRE) -- Unigold Inc. ("Unigold" or the "Company") (TSX-V: UGD) is pleased to announce that it has closed its previously announced private placement of 33,333,334 units of the Company (the "Units") at a price of $0.18 per Unit for gross proceeds of approximately C$6,000,000 (the "Offering"). Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.30 at any time prior to June 23, 2021. The Company has the right to accelerate the expiry date of the Warrants on notice to the holders of Warrants 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 at any time after October 23, 2020.
In connection with the closing of the Offering, the Company paid an aggregate of $327,154 in cash and issued an aggregate of 1,949,520 finder warrants to various finders in connection with the Offering. Each finder warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.18 at any time prior to June 23, 2021, subject to the right of the Company to accelerate the expiry on the same terms as the Warrants. Finder's fees were payable to a group of financial advisors led by Clarus Securities Inc.
The net proceeds from the Offering will be used to fund the Company's continued exploration and development on its Neita Concession in the Dominican Republic, and for general working capital purposes. All securities issued under the Offering are subject to a four-month hold period, which will expire October 24, 2020.