Toronto, Ontario – December 7, 2020 – Compass Gold Corp. (TSX-V: CVB) (“Compass” or the “Company”) announced today that it has increased the size of its previously announced $2.5 million private placement (the “Offering”) (see Compass news release dated November 30, 2020) and will now issue up to 17 million common shares of the Company, at a price of $0.20 per share, for aggregate gross proceeds of up to $3.4 million.
The proceeds from this offering will be used to fund exploration, including a 17,000-meter drill program to be completed before the end of Q2, 2021, and for general corporate purposes. Drilling will focus on mineralized trends on the Tarabala and Samagouela targets discovered at the Company’s Sikasso Property in southern Mali. Phase 1 of this program, consisting of 3,000 meters of drilling on the first of these targets, is fully funded and has commenced. Initial drill results are expected near the end of December.
Larry Phillips, Compass President and CEO, said, “The response from our existing shareholder to this offering has been very robust, and we appreciate their continued support. As with last year’s offerings, we have used this opportunity to expand our share register by adding strong and experienced investors, including major Institutional resource funds who recognize how far Compass has progressed and the tremendous potential to be realized over the coming year. Our discovery team, led by Dr. Madani Diallo and Dr. Sandy Archibald, is committed to bold objectives for 2021, and now we have the resources to help them deliver the results that will benefit all of us as shareholders.”
Mr. Phillips continued, “We also wish to welcome the team from Red Cloud Financial and acknowledge their excellent work in bringing important new investors into this expanded offering. It is clear to me that the Red Cloud Team shares our vision and excitement for the valuable opportunities that Compass Gold presents. We look forward to their assistance in the months ahead to build and expand our communications and market outreach activities. As we embark upon a year of important and regular reporting of drill results, we are committed to generating and building our relationships within the resource investment community, throughout North America and beyond.”