Toronto, Ontario – April 25, 2019 – Compass Gold Corporation (TSX-V: CVB) (“Compass” or the “Company”) announced today that has issued, on a non-brokered private placement basis, a total of 9,094,335 common shares of the Company, at a price of $0.30 per share, for aggregate gross proceeds of $2,728,300, pursuant to the closing of the previously announced private placement (see Compass news releases dated April 8th and 15th, 2019) (“the Offering”).
In connection with the closing of the Offering, the Company issued an aggregate of 359,543 broker warrants (the “Broker Warrants”) and paid an aggregate of $107,863 in cash to certain finders. Each Broker Warrant entitles the holder thereof to purchase one common share of the Company for a period of 12 months from date of closing at an exercise price of $0.30 per share.
Closing of the Offering is 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, “The successful completion of this offering represents another positive milestone in the progress of our company, one which will enable us to continue with our vigorous exploration of our highly prospective Sikasso gold property in southern Mali. I would like to thank the many existing shareholders as well as the key new strategic investors who have participated in this offering for their support. Thank you as well to our CFO, Lou Nagy for coordinating this rather complex process, as well as to Beacon Securities and INFOR Financial for their advisory services with this offering.”
The funds received from the Offering will enable the Company’s technical team to follow the current drilling program with an aggressive drill campaign of up to 10,000 metres across the Ouassada, Faraba-Coura, Sankarani permits and the Yanfolila South permit block, which is targeted for completion before the end of 2019. This drilling is predicated on the results of the ongoing induced polarization (IP) geophysical survey, geochemical sampling of extensive artisanal areas, and geological mapping.