Business
Unigold Inc. - Short term investment status
Unigold Inc. - Short term investment status.
About this update from Unigold Inc.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n\n\nDISSEMINATION IN THE UNITED STATES./\n\n\nTORONTO, Aug. 28 /CNW/ - Unigold Inc. ("Unigold" or the "Company")\n(TSX-V: UGD). With recent disruptions in global credit markets affecting\nnumerous US and Canadian banks, mutual funds, institutional and private\ninvestors and large and junior public companies, Unigold wishes to advise\nshareholders of the status of its cash investments of approximately CAD$10\nmillion and US$1 million. In accordance with its investment policy, and based\nupon professional advice, the Company invested in products ranked by Dominion\nBond Rating Service ("DBRS") as R-1-High. Between August 13 and 15, 2007,\nvarious participants in the asset-backed commercial paper ("ABCP") market\nannounced that they were experiencing market disruption and as a result were\nunable to meet their repayment obligations until their liquidity providers\nfund such repayment.\n\n\nA note held by the Company which was due and payable for CAD$10 million\nremains outstanding as a result of the inability to complete a rollover on the\ndue date because of lack of (temporary) liquidity for asset-based notes.\n\n\nThe Company currently has sufficient cash on hand to fund ongoing\noperations assuming that this market disruption is settled in a timely manner.\nIn the interim, the Company has received a confirmation from its bank that it\nhas approved a CAD$4,000,000 demand loan that will be backed by the ABCP to\nassist the Company with its working capital requirements.\n\n\n"This credit facility provides us with sufficient cash to continue to\noperate while the longer-term liquidity issue is being resolved in the\nmarketplace," said Dr. Talal Al-Shair, Chairman of the Board of Unigold. Dr.\nAl-Shair further stated that Shairco for Trading, Industry & Contracting Co.\nLtd., Unigold's major shareholder, will also offer a credit facility to draw\non should such a need arise. "With the very encouraging results of the\nexploration program on Unigold's property in the Dominican Republic, Unigold\nmust be in a position to actively pursue its current exploration program."\n\n\nAbout Unigold Inc.\n\n\n------------------\n\n\nUnigold Inc. is exploring to find and develop gold deposits on its\n100-per-cent-...