Unigold Inc.said May 2 that it has enlisted a syndicate of agents, including M Partners andPrimary Capital Inc., for a private placement of up to 8,333,334 units at 30 Canadiancents each to raise up to C$2.5 million.
Each unit will consist of one common Unigold share and one sharepurchase warrant, exercisable for one common share at 45 cents for a 24-month periodfrom the financing's closing, subject to an acceleration clause.
Unigold also granted the underwriters an overallotment optionto purchase an additional 20% of the units sold under the offering at the same priceand terms, exercisable in full or in part at any time up to 48 hours from the placement'sclosing.
The company plans to use the proceeds to finance explorationand development of its gold assets in the Dominican Republic and for general workingcapital.
The financing is expected to close by May 18, subject to regulatoryapproval.