IFC Makes Its First Investment in Dominican Republic Mining Sector through Unigold

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 development.

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 sustainable manner.

"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.

About IFC

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.

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SOURCE: International Finance Corporation