/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, July 11 /CNW/ - Unigold Inc. ("Unigold" or the "Company")
(TSX-V: UGD) is pleased to announce the closing of the non-brokered private
placement (the "Private Placement") of 9,000,000 units of the Company
("Units") at a price of $0.50 per Unit for aggregate gross proceeds of
$4,500,000. Each Unit consists of one common share of the Company (a "Common
Share") and one warrant (a "Warrant"), with each Warrant entitling the holder
thereof to purchase one Common Share at any time for a period of 12 months
following the date of the closing of the Private Placement at a price of
$0.75.
PowerOne Capital Markets Limited ('PowerOne") and Kingsdale Capital
Markets Inc. ("Kingsdale") were collectively paid a cash commission of
$170,910 and were issued 455,760 compensation warrants, with each warrant
entitling the holder thereof to purchase one Common Share at any time for a
period of 12 months following the date of the closing of the Private Placement
at a price of $0.50.
Shairco for Trading Industry and Contracting, the Company's major
shareholder subscribed for 3,303,000 of the 9,000,000 units sold pursuant to
the Private Placement and thereby retained its 36.7% ownership in Unigold. The
balance of the Units were purchased by Sprott Asset Management Inc., Firebird
Global Master Fund and Pinetree Capital Ltd.
Completion of the Private Placement is subject to receipt by the Company
of final approval from the TSX Venture Exchange. All of the securities issued
in connection with the Private Placement, including any securities issued to
PowerOne and Kingsdale, are subject to a four month hold period.
With the closing of this Private Placement, the Company has approximately
$7.5 million in the treasury to fund its ongoing exploration program in the
Dominican Republic.
About the Company
-----------------
The Company is exploring to find and develop gold deposits on its 100%
owned 226 km(2) Neita property located in the Dominican Republic. The goal is
to target bulk tonnage, open pittable, oxide gold deposits within a similar
setting to the world class Pueblo Viejo gold project which occurs within a
broad northwest trending Cretaceous age volcanic greenstone belt that
transects the Dominican Republic. The economics of any discovery will be
significantly improved by the fact that Unigold is benefiting from an 18 year
holiday on all corporate taxes, sales taxes and import duties in the Dominican
Republic.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
Certain statements contained in this document, including statements
regarding events and financial trends that may affect our future operating
results, financial position and cash flows, may constitute forward-looking
statements within the meaning of the federal securities laws. These statements
are based on our assumptions and estimates and are subject to risk and
uncertainties. You can identify these forward-looking statements by the use of
words like "strategy", "expects", "plans", "believes", "will", "estimates",
"intends", "projects", "goals", "targets", and other words of similar meaning.
You can also identify them by the fact that they do not relate strictly to
historical or current facts. We wish to caution you that such statements
contained are just predictions or opinions and that actual events or results
may differ materially. The forward-looking statements contained in this
document are made as of the date hereof and we assume no obligation to update
the forward-looking statements, or to update the reasons why actual results
could differ materially from those projected in the forward-looking
statements. Where applicable, we claim the protection of the safe harbour for
forward-looking statements provided by the (United States) Private Securities
Litigation Reform Act of 1995.
%SEDAR: 00004036E
