WASHINGTON, D.C., May 30, 2013 /CNW/ - IFC, a member of the World Bank
Group, today agreed to invest approximately five million Canadian
dollars in Unigold Inc. to support the company's ongoing gold and base
metals exploration project. The project is expected to provide future
jobs and government revenues to the Dominican Republic upon further
IFC's investment will be used by Unigold to advance its flagship Neita
project in the Dominican Republic, near the border with Haiti. IFC will
work with the company to ensure that exploration and any subsequent
mine development is carried out in an environmentally and socially
"Unigold is pleased to welcome IFC as a shareholder and partner on the
Neita project," said Andrew Cheatle, President and Chief Executive
Officer of Unigold. "We look forward to drawing from IFC's expertise to
help ensure that the progress at Neita follows global best practices
for the mineral exploration industry, the environment, and for working
with local communities."
IFC's support to the Neita project will help promote good environmental
and social standards in the Dominican Republic's mining sector and send
a positive signal for future foreign direct investment in the country.
"We believe Unigold, IFC's first mining investment in the Dominican
Republic, has the leadership and resources to make the Neita project a
success," said Tom Butler, IFC Global Head for Mining. "This investment
aligns with our strategy to support projects with the potential to
bring long term economic benefits to developing countries."
IFC offers mining clients in developing countries a broad range of
financial and advisory services throughout the mining life cycle.
Through its early equity investment program, IFC assists
exploration-stage companies like Unigold with financing and advice on
best practice in environmental and social management.
Legal Disclosure about IFC's Investment
IFC, a member of the World Bank Group, has agreed to acquire 20 million
units ("Units") of Unigold Inc. ("Unigold") pursuant to a private
placement (the "Financing"). Each Unit is composed of one common share
of Unigold ("Common Share") and three-quarters (3/4) of one Common Share purchase warrant ("Warrant"). Each of the warrants
entitles the holder to purchase one common share of Unigold at an
exercise price of $0.50 Canadian dollars per Common Share for a period
of four years, subject to Unigold's right to accelerate the expiration
of the warrants in accordance with their terms.
The issue price per Unit is 0.25 Canadian dollars for a total purchase
price of 5 million Canadian dollars. It is expected that upon the
closing of the Financing there will be 243,713,235 Common Shares
outstanding. Immediately upon the closing of the Financing, it is
expected that IFC will directly hold 8.2 percent of Unigold's
outstanding share capital and approximately 13.5 percent of the
Unigold's outstanding share capital assuming the exercise of all of the
Warrants held by IFC.
IFC is acquiring the Units by way of private placement pursuant to the
terms of an equity and warrant subscription agreement containing
customary terms and conditions as well as certain rights including,
without limitation, information, policy and pre-emptive rights. The
equity and warrant subscription agreement will be filed with the
Canadian securities regulators and will be available on www.sedar.com
under Unigold's profile. The Financing is subject to customary
conditions precedent and is expected to close in June, 2013. IFC is
acquiring the Units for investment purposes. IFC may, in the future,
take such actions in respect of its holdings as IFC deems appropriate
in light of the circumstances then existing.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help
developing countries achieve sustainable growth by financing
investment, mobilizing capital in international financial markets, and
providing advisory services to businesses and governments. In FY12, our
investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark
innovation, and tackle the world's most pressing development
challenges. For more information, visit www.ifc.org.
IFC is an international organization established by Articles of
Agreement among its member countries, including Canada, and as such,
enjoys certain immunities, privileges and exemptions, including the
freedom of all of its property and assets from restrictions,
regulations, controls and moratoria of any nature. The voluntary
provision by IFC of this news release does not in any way constitute or
imply a waiver, termination or modification by IFC of any privilege,
immunity or exemption of IFC granted in the Articles of Agreement
establishing IFC, international conventions, or applicable law.
About Unigold Inc.
Unigold is a Canadian based mineral exploration company traded on the
TSX Venture Exchange under the symbol UGD, focused primarily on
exploring and developing its gold assets, notably the Neita Property in
the Dominican Republic.
SOURCE: International Finance Corporation
For further information:
In Washington, D.C.:
Josef Skoldeberg, IFC
Phone: 1 (202) 473 6978