Toronto, Ontario – November 7, 2019 – Compass Gold Corporation (TSX-V: CVB) (“Compass” or the “Company”) announced today that it has increased the size of its previously announced non-brokered private placement (“the Offering”) (see Compass news release dated November 4, 2019) of a total of approximately 15,700,00 common shares of the Company, at a price of $0.35 per share, for aggregate gross proceeds of approximately $5,500,000. Subject to the receipt of funds and Subscription Agreements from investors, the Offering is expected to close on or about November 20, 2019.
No broker warrants are being issued, but a finder’s fee of 6% in cash, as well as 200,000 compensation shares, are intended to be paid as compensation to certain parties who assisted with the Offering.
Closing of the Offering is also subject to the receipt of all necessary regulatory approvals. All the shares issuable pursuant to the Offering will be subject to a hold period expiring four months and one day after the date of issuance.
Larry Phillips, Compass Gold’s President and CEO, said, “This financing has been a great success for the Company. We have added an excellent strategic partner in SEMAFO and our existing shareholders have provided their full endorsement by taking up the majority of the remaining Offering. Their support, along with a number of high-quality new investors, has resulted in the placement being oversubscribed. All of this has been accomplished in just three days and in the face of a difficult market for our sector. In order to accommodate a portion of that additional demand, we have agreed to a slight increase in the $5 million amount announced on Monday to $5.5 million.”
The funds received from the Offering will enable the Company’s technical team to follow the recently announced (see Compass news release dated November 6, 2019) field work program, including an aggressive drill campaign of more than 10,000 metres on the Farabakoura Trend, comprising the Farabakoura and Kabangoué artisanal workings and the high-priority Boumban prospect, on its Sikasso Property in Southern Mali.