Unigold Inc. (TSXV:UGD) announced a proposed strategic investment from IFC, a member of the World Bank Group, for $5,000,000.
As quoted in the press release:
The terms of the potential investment are that IFC would make a $5-million investment in the Company at a share price of a 20 day VWAP at $0.25 per share, adding to Unigold’s existing cash reserves of $5.8-million. Following this investment, IFC would hold approximately 20-million common shares in the Company, representing approximately 8.2% of the issued share capital. IFC would also receive three quarters of a warrant per share subscribed for at a strike price of $0.50 per full warrant, with a 4 year term, with accelerator terms applicable to 50% of the warrants. The investment is subject to the execution of final documentation and the approval by the IFC board of directors.
Unigold Inc. President and CEO Andrew Cheatle said:
The board and executive management have thoroughly considered the merits of a strategic IFC investment and have unanimously concluded that it is in the best interests of existing Unigold Inc. shareholders. Having IFC’s approval to their high standard of technical, environmental and social due diligence in this investment will mark a significant endorsement to the viability of the Candelones deposit and the Neita Property in general.