Unigold Inc.

Unigold Inc.

May 11, 2016 07:33 ET

Unigold Announces Increase to Brokered Private Placement

TORONTO, ONTARIO--(Marketwired - May 11, 2016) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce that it has increased the size of its previously announced private placement, disclosed in a press release dated May 2, 2016, from C$2,500,000 to C$4,000,000 (the "Increased Offering"). Under the Increased Offering, the Company may issue up to 13,333,333 units of the Company (the "Units") at a price of C$0.30 per Unit. Units issued pursuant to the Increased Offering will be sold by a syndicate of agents appointed by the Company including M Partners Inc., as lead agent, and Primary Capital Inc. (collectively, the "Agents"). Each Unit will consist of one common share of the Company (a "Unit Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company (a "Warrant Share" and together with the Units, Unit Shares, and Warrants, the "Securities") for a period of 24 months from the closing date of the Increased Offering (subject to early expiry as described below) at a price of C$0.45 per Warrant Share. Unigold has also granted the Agents an option, exercisable in whole or in part any time up to 48 hours before the closing of the Increased Offering, to further increase the size of the Increased Offering by up to 20% (the "Upsized Option") based on the number of Units sold pursuant to the Increased Offering on the same terms and conditions as the Increased Offering. In the event that the maximum number of Units is issued under the Increased Offering, and the Upsized Option is exercised in full, an aggregate of 16,000,000 Units will be issued under the Increased Offering resulting in aggregate gross proceeds of C$4,800,000.

The proceeds from the Increased Offering will be used to fund the Company's continued exploration and development of its gold assets in the Dominican Republic, and for general working capital purposes.

Pursuant to the terms of the Warrants, the Company will have the right to accelerate the expiry date of the Warrants on notice to the Warrant holders if the closing price of the Company's common shares on a stock exchange in Canada is higher than C$0.90 per common share for more than 20 consecutive trading days after four months and one day from the closing date of the Increased Offering, in which case the Warrants will expire 30 days after the date on which such notice is given.

The Securities to be issued pursuant to the Increased Offering will be offered pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. Closing of the Increased Offering is anticipated to occur on or about May 18, 2016 and is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. The Securities issued under the Increased Offering will be subject to a four month hold period which will expire four months and one day from the date of closing of the Increased Offering.

About Unigold Inc. - Discovering Gold in the Caribbean

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 in the Dominican Republic.

For further information please visit www.unigoldinc.com.

Forward-looking Statements

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.

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.

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