Unigold Inc. (TSX-V: UGD) is pleased to announce that it has closed its previously announced private placement of 25,192,350 units of the Company at a price of $0.13 per Unit for gross proceeds of approximately C$3,275,005. Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.30 until the date that is the earlier of: (i)August 10, 2023, or (ii) 30 days after the date on which the Company gives notice of acceleration, which notice may be provided no earlier than four months and twenty-one days from the date of issue if the closing price of the Common Shares on a stock exchange in Canada is higher than $0.60 per Common Share for more than 20 consecutive trading days.
Insiders of the company subscribed for a total of 751,700 units:
- CEO and director Joe Hamilton subscribed for 101,700 units
- Director Normand Tremblay subscribed for 650,000 units
The net proceeds from the Offering will be used to fund the Company's continued exploration and development on its Neita Concession in the Dominican Republic, and for general working capital purposes.
Unigold's (TSX-V: UGD) Neita Concession encompasses 21,031 Hectares and is highly prospective for:
- Porphyry Cu and Cu-Au deposits;
- High to low sulphidation Au and Au-Ag epithermal deposits; and
- Volcanogenic Hosted Massive Sulphide (“VHMS”) Au-Ag-Cu-Pb-Zn deposits.
Project to date investment totals CAD$ 40.0 M. Completed work includes:
- Soil geochemistry of the entire concession (32,000 samples) that has highlighted twenty one (21) prospective targets;
- 11,000 surface rock geochemistry samples confirming all identified soil anomalies;
- 32,000 meters of surface trenching, predominantly at the Candelones Main and Connector deposits;
- 100,000 meters of resource definition drilling at the Candelones Main, Connector and Extension deposits;
- 23,000 meters of reconnaissance exploration drilling at 12 additional targets.
Within the Dominican Republic, there currently multiple world-class assets being developed. This includes:
Pueblo Viejo Mine, which is approximately 100 kilometers northwest of the capital city of Santo Domingo and is operated by the Pueblo Viejo Dominicana Corporation — a joint venture between Barrick Gold (60%) and Newmont (40%). Development of the project started in 2009, and first production occurred in 2012. In 2020, Pueblo Viejo produced 900,000 ounces of gold at an All-In Sustaining Cost of $660/ounce. The current gold reserves and resources stand at: 6.2Moz proven and probable; 15Moz measured and indicated; 2.4Moz Inferred (all based on information from Barrick Gold’s website: Barrick Gold Corporation - Operations - Pueblo Viejo)
Falcondo Mine is a ferronickel surface mining operation with production capacity of 29,000 tonnes of contained nickel per annum located in the Dominican Republic with operations dating back to 1971. Falcondo is typically a swing producer and was put on care and maintenance when nickel prices fell in October 2013. In 2015, Glencore sold its 85.26% ownership in the operation to Americano Nickel Limited, a private equity company which has subsequently restarted the mine. Franco-Nevada has not received any dividends in recent years (based off information on Franco Nevada website: Franco-Nevada Corporation - Our Assets - Asset List - Latin America - Falcondo (Ni) (franco-nevada.com)).
Cerro De Maimon, is an operating copper/gold mine in the Dominican Republic. Cerro de Maimón hosted approximately 6 million tonnes of open-pit copper/gold reserves, as reported in a National Instrument 43-101 compliant technical report dated August 2007 by independent consultants. The open-pit ore is exhausted and mining operations have transitioned to underground. The Cerro de Maimón property, and surrounding 3,391 hectare exploitation concession, was acquired from Falconbridge Dominicana (Falcondo) in April 2002. Falcondo retained a 2% NSR of which Perilya purchased 50% in 2008. The company owns 100% of the deposit, subject to the remaining 1% NSR retained by Falcondo. The Dominican Secretary of State of Environment and Natural Resources granted the Environmental License to Perilya to mine the Cerro de Maimón mineral deposit in 2004 (based off Perilya website: Cerro De Maimon » Perilya).