Proceeds to Support Continuing Exploration into 2021
Toronto, Ontario – November 30, 2020 – Compass Gold Corp. (TSX-V: CVB) (“Compass” or the “Company”) announced today that it intends to issue, on a non-brokered private placement basis, up to 12,500,000 common shares of the Company, at a price of $0.20 per share, for aggregate gross proceeds of up to $2.5 million (the “Offering”).
The proceeds of the Offering will be used to further advance the Company’s ongoing exploration efforts at its Sikasso Property in southern Mali (see Compass news releases dated October 5th and 29th, 2020), as well as for general corporate purposes.
Larry Phillips, Compass President and CEO, said, “We are pleased to confirm that Phase 1 of exploration and drilling work following the end of the 2020 rainy season is underway, with the initial drilling results from this latest program on our exciting Tarabala and Samagouela trends anticipated before the end of December. With this Private Placement, our exploration team can continue following up with the planned Phase 2 and Phase 3 drilling on multiple targets into 2021 without interruption or delay.”
Certain insiders of the Company may participate in the Offering. Further, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation, the Company may pay a finder’s fee to certain registered dealers in connection with the Offering comprised of: (i) a cash fee equal to 6.0% of the gross proceeds received from the sale of common shares sold to purchasers introduced to the Company by the finder, and (ii) warrants exercisable for a period of two years following the closing of the Offering to acquire that number of common shares of the Company, at a purchase price of $0.20 per share, equal to 6% of the number of common shares sold to purchasers introduced to the Company by the finder.
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.