/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Aug. 28 /CNW/ - Unigold Inc. ("Unigold" or the "Company")
(TSX-V: UGD). With recent disruptions in global credit markets affecting
numerous US and Canadian banks, mutual funds, institutional and private
investors and large and junior public companies, Unigold wishes to advise
shareholders of the status of its cash investments of approximately CAD$10
million and US$1 million. In accordance with its investment policy, and based
upon professional advice, the Company invested in products ranked by Dominion
Bond Rating Service ("DBRS") as R-1-High. Between August 13 and 15, 2007,
various participants in the asset-backed commercial paper ("ABCP") market
announced that they were experiencing market disruption and as a result were
unable to meet their repayment obligations until their liquidity providers
fund such repayment.
A note held by the Company which was due and payable for CAD$10 million
remains outstanding as a result of the inability to complete a rollover on the
due date because of lack of (temporary) liquidity for asset-based notes.
The Company currently has sufficient cash on hand to fund ongoing
operations assuming that this market disruption is settled in a timely manner.
In the interim, the Company has received a confirmation from its bank that it
has approved a CAD$4,000,000 demand loan that will be backed by the ABCP to
assist the Company with its working capital requirements.
"This credit facility provides us with sufficient cash to continue to
operate while the longer-term liquidity issue is being resolved in the
marketplace," said Dr. Talal Al-Shair, Chairman of the Board of Unigold. Dr.
Al-Shair further stated that Shairco for Trading, Industry & Contracting Co.
Ltd., Unigold's major shareholder, will also offer a credit facility to draw
on should such a need arise. "With the very encouraging results of the
exploration program on Unigold's property in the Dominican Republic, Unigold
must be in a position to actively pursue its current exploration program."
About Unigold Inc.
Unigold Inc. is exploring to find and develop gold deposits on its
100-per-cent-owned 226 km(2) Neita property located in the Dominican Republic.
Having the largest land package in the Dominican Republic, the goal is to
target bulk tonnage, open pittable, oxide gold deposits within a similar
setting to the world class Pueblo Viejo gold project which occurs within a
broad northwest trending Cretaceous age volcanic greenstone belt that
transects the Dominican Republic. The economics of any discovery will be
significantly improved by the fact that Unigold is benefiting from an 18-year
holiday on all corporate taxes, sales taxes and import duties in the Dominican
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
Certain statements contained in this document, including statements
regarding events and financial trends that may affect our future operating
results, financial position and cash flows, may constitute forward-looking
statements within the meaning of the federal securities laws. These statements
are based on our assumptions and estimates and are subject to risk and
uncertainties. You can identify these forward-looking statements by the use of
words like "strategy", "expects", "plans", "believes", "will", "estimates",
"intends", "projects", "goals", "targets", and other words of similar meaning.
You can also identify them by the fact that they do not relate strictly to
historical or current facts. We wish to caution you that such statements
contained are just predictions or opinions and that actual events or results
may differ materially. The forward-looking statements contained in this
document are made as of the date hereof and we assume no obligation to update
the forward-looking statements, or to update the reasons why actual results
could differ materially from those projected in the 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.
For further information:
For further information: Dr. Ibrahim M. Eitani, President & CEO and
Director, (+966-55-88-22-080), Email: firstname.lastname@example.org; Mr. Daniel Danis,
V.P. Exploration & COO and Director, (450) 667-4766); Web site
www.unigoldinc.com; Email: email@example.com