Unigold Announces Closing of Non-Brokered Private Placement of $1,568,000
MWN-AI** Summary
Unigold Inc. has successfully completed a non-brokered private placement, raising gross proceeds of $1,568,000 by issuing 19.6 million units at a price of $0.08 per unit. Each unit comprises one common share and one-half of a common share purchase warrant, with each full warrant allowing the holder to purchase an additional common share at an exercise price of $0.12 for a period of four years. This strategic fundraising initiative aims to support Unigold’s ongoing permitting and development efforts for its Neita Sur Concession in the Dominican Republic, as well as for general working capital.
Insider participation included subscriptions from Osvaldo Oller, a director of the company, who purchased 1.75 million units. Due to this insider involvement, the transaction is considered a related party transaction under Multilateral Instrument 61-101, which mandates certain disclosures to protect minority shareholders. Unigold plans to file a material change report detailing these transactions, which was not completed 21 days prior to the offering's closure as the specifics were finalized shortly beforehand.
The offering is still subject to the TSX Venture Exchange’s final acceptance and all securities issued are under a four-month hold period, in compliance with regulatory requirements. Importantly, these securities have not been registered under the U.S. Securities Act of 1933, thus limiting their sale within the United States unless appropriate exemptions are applicable.
In conjunction with the private placement, Unigold also held its Annual General and Special Meeting of Shareholders on June 24, 2025, where important resolutions, including the election of directors and appointment of auditors, were passed by those in attendance. For more information, stakeholders can visit Unigold’s website or contact company representatives directly.
MWN-AI** Analysis
Unigold Inc. (TSXV: UGD) has successfully completed a non-brokered private placement, raising $1,568,000 through the issuance of 19.6 million units at $0.08 per unit. Each unit consists of a common share and a half warrant, with the warrants exercisable at $0.12 for a four-year term. The proceeds will primarily support ongoing permitting and development at the Neita Sur Concession in the Dominican Republic, as well as provide general working capital.
This capital raise, although modest in size, indicates ongoing investor confidence in Unigold's future prospects, especially given that insiders have participated in this offering. The involvement of insiders, while presenting a related party transaction, typically signals confidence in the company’s trajectory and can be seen as a positive indicator for potential investors.
Investors should consider the implications of the four-month hold period for the securities, which restrict immediate liquidity and could contribute to price stabilization in the short term. Additionally, the lack of finders' fees suggests a direct commitment from the company towards optimizing fundraising efficiency. However, as always, the investments should be viewed within the broader context of market conditions, sector performance, and the underlying fundamentals of the company.
As Unigold moves forward, monitoring developments at the Neita Concession will be crucial. With mineral prices remaining volatile and geopolitical dynamics at play, any advancements in project permitting or resource discovery could significantly impact share valuation.
For potential investors, the current price points present an entry opportunity, particularly if strategic advancements and financial performance continue to align favorably. However, exercise caution by considering market fluctuations and the inherent risks of investing in exploration-stage companies. Regularly assessing updates from Unigold will be essential to informed decision-making.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Toronto, Ontario--(Newsfile Corp. - June 24, 2025) - Unigold Inc. (TSXV: UGD) (OTC Pink: UGDIF) (FSE: UGB1) ("Unigold" or the "Company") is pleased to announce that it has completed a non-brokered private placement of 19.600,000 units of the Company (each, a "Unit") at a price of $0.08 per Unit for gross proceeds of $1,568,0000 (the "Offering"). Each Unit consists of one common share 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 will entitle the holder thereof to purchase one Common Share at an exercise price of $0.12 until four years following the date of issue.
No finders fees were paid in connection with this closing of the Offering. The proceeds from the Offering will be used to fund the Company's continued permitting and development on its Neita Sur 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. The Offering is subject to final acceptance of the TSX Venture Exchange.
The following "insiders" of the Company subscribed for Units under the Offering:
| Insider | Units Purchased | Relationship |
| Osvaldo Oller | 1,750,000 | Director of Issuer |
| Total: | 1,750,000 |
Each subscription by an "insider" is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61- 101") and Policy 5.9 - Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. Pursuant to MI 61-101, the Company will file a material change report providing disclosure in relation to each "related party transaction" on SEDAR under the Company's issuer profile at www.sedarplus.ca. The Company did not file the material change report more than 21 days before the expected closing date of the Offering as the details of the Offering and the participation therein by each "related party" of the Company were not settled until shortly prior to the closing of the Offering, and the Company wished to close the Offering on an expedited basis for sound business reasons. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization, and no securities of the Company are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the Company is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(1)(a) as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Results of Annual General and Special Meeting of Shareholders
The Annual General and Special Meeting of Shareholders of the Corporation was held on June 24, 2025. All resolutions, including the Election of Directors, the appointment of the auditors of the Corporation and the approval of the Share Incentive Plan were passed by the shareholders represented at the meeting.
For further information please visit www.unigoldinc.com or contact:
Mr. Joseph Hamilton
Chairman & CEO
T. (416) 866-8157
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256670
FAQ**
How is Unigold Inc. (UGD:CC) planning to allocate the proceeds from its recent $1.57 million private placement, particularly in relation to the Neita Sur Concession development?
What measures is Unigold Inc. (UGD:CC) taking to ensure compliance with Multilateral Instrument 61-101 regarding insider transactions and related party disclosures in this Offering?
With the recent completion of the private placement, how might Unigold Inc. (UGD:CC) influence its market capitalization and future growth prospects in the Dominican Republic?
What updates were provided during the Annual General and Special Meeting of Shareholders for Unigold Inc. (UGD:CC), and how might these decisions impact shareholder value moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Unigold, Inc. (OTC: UGDIF).
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