Vancouver – Shareholders of Unigold (UGD-V) have given consent to a proposed $3.2-million private placement financing that would result in a Saudi firm controlling about 39.8% of the Ontario-based company.
About 64.5% of shareholders approved the proposed sale of 20.18 million shares at 16 per share to Shairco, of Jeddah, Saudi Arabia.
Unigold is exploring for bulk-tonnage oxide gold deposits at its wholly owned Neita property in the Dominican Republic. The company’s land package is near, and has geological similarities to, the world-class Pueblo Viejo gold deposit held by Placer Dome (PDG-T, PDG-N).
The company has drilled 41 holes to test the Los Candelones gold deposit that lies within a 1,200-metre by 600-metre gold-in-soil anomaly and coincident Induced Polarization (IP) high. The company has less advanced targets elsewhere that will be evaluated first by geochemical sampling, followed by trenching and drilling, if warranted.
Unigold plans to use the proceeds of the recent financing to further explore the Neita property, to continue drilling Los Candelones, and for potential future acquisitions and general corporate purposes.
Now that the private placement has been given shareholder consent, the closing of the transaction can proceed as proposed, subject to final approval by the TSX Venture Exchange.
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