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Drilling of the Candelones Extension in the UniGold Inc's Neita Concession. (Photo: Northern Miner)

Unigold raises CN$2 million to fund gold exploration in DomRep

Drilling of the Candelones Extension in the UniGold Inc's Neita Concession. (Photo: Northern Miner)

Canadian mineral exploration company Unigold Inc recently disclosed that it is pursuing a non-brokered private placement to raise new capital of up to CN$2.16 million for its gold exploration business in the Dominican Republic.

“Our drilling in 2016, 2019 and 2020 suggests that this high-grade mineralisation may overprint the early, low-grade primary mineralisation along reactivated feeder zones.”

— Unigold Inc

In effect, the company has invited private investors to purchase 12 million shares at a unit price of CN$0.18. However, Unigold Inc did not contract the services of a financial institution to broker the private placement.

With the purchase of one unit of shares, investors will also earn the right to purchase additional common stocks following the closure of the private placement, for a period of up to two years, according to a release from the company.

The release further outlined that the private placement is subject to the policies of the TSX Venture Exchange, which will also grant regulatory approval after the offer has closed.

(Photo: Venture Law Corporation)

“Closing of the offering may be completed in multiple tranches and is subject to certain closing conditions including, but not limited to, conditional approval from the TSX Venture Exchange and receipt of any other required regulatory approvals. The securities being offered under the Offering will be issued pursuant to applicable exemptions from the prospectus requirements under applicable securities laws and will be subject to a hold period that will expire four months and one day from the date of issue,” Unigold Inc stated.

Gold exploration and discovery

In the meantime, the company has planned to use proceeds from the private placement to “exploration and development on its Neita Concession in the Dominion Republic, and for general working capital purposes”.

In a previous statement from the company, Unigold Inc revealed that its studies of the gold mine the Caribbean country indicated 84 per cent gold recovery from Candelones Extension ore using conventional processing.

“Our drilling in 2016, 2019 and 2020 suggests that this high-grade mineralisation may overprint the early, low-grade primary mineralisation along reactivated feeder zones. The high-grade domains appear to be continuous with predictable geometry and remain open along strike and at depth,” the statement read.

A 2015 report also showed that the Candelones Extension contains 894,000 oz gold, as well as copper.

For the last 17 years, the Neita Concession has been the flagship project of Unigold Inc, which has to date invested over CN$42 million. The reserve totals 22,616 hectares and is approximately 200 linear kilometres northwest of the capital city of Santo Domingo.