COMPASS GOLD CLOSES $3,637,062 PRIVATE PLACEMENT 17,000-Metre Drill Program has Commenced Along the Tarabala and Samagouela Trends
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United States
COMPASS GOLD CLOSES $3,637,062 PRIVATE PLACEMENT
17,000-Metre Drill Program has Commenced Along the Tarabala and
Samagouela Trends
Toronto, Ontario – December 16, 2020 – Compass Gold Corporation (TSX-V: CVB) (“Compass” or
the “Company”) announced today that it has issued, on a non-brokered private placement basis,
a total of 18,185,310 common shares of the Company, at a price of $0. 20 per share, for
aggregate gross proceeds of $3,637,062 pursuant t o the closing of its previously announced
private placement ( the “Offering”) (see Compass news releases dated No vember 29, and
December 6 and 8, 2020).
Larry Phillips, Compass Gold’s Preside nt and CEO, said, "Once again our core group of existing
shareholders has taken up the majority of this important Private Placement. We are grateful for
their strong and continuing suppo rt. As with prior offerings, we have used this opportunity to
add several institutional shareholders who have recognized the quality of our properties and the
experienced team conducting the exploration. The addition of these funds to our existing
treasury will allow us to take the results of this major drilling program in June 2021 and plan for
continuous drilling throughout the rainy season. I can assure all of our shareholders that our
team is working aggressively to carry out the drilling plan and ac hieve our objective of
identifying clear potential for a near surface gold resource."
Dr. Madani Diallo, Director and Exploration Manager, added, “With the end of the rainy season
in Mali, w e have now started an aggressive exploration and drilling program commencing at
Samagouela and Tarabala, two of our highest priority target zones, where earlier this year our
drilling int ercepted significant gold mineralization. Those large trends host just a few of the
growing number of highly -prospective gold targets on our Sikasso Property. Our exploration
team in Mali is excited by the opportunity to complete our current 17,000-metre drill program
in Q3, 2021. Based on the results of that work, we will, for the first time, be able to plan and
conduct drilling on the highest priority targets without interruption by the rainy season. I firmly
believe that our work in 2021 will validate the confidence that the Company's shareholders have
shown in us."
Extensive new exploration and drill program launched
Compass has recently launched Phase 1 of a previously-reported 17,000-metre drilling program,
beginning on targets on the Samagouela Trend, which will be followed be further drilling on the
Tarabala Trend. The initial drilling results from this latest program are expected to be available
in late December. Along with the Company ’s existing funds, proceeds from this Private
Placement will be sufficient to fund this entire program , and will enable t he field team to
continue following up with the planned Phase 2 and Phase 3 drilling on mu ltiple targets in to
2021 without interruption.
Placement Details
Finder’s fees in an aggregate amount of $106,980 were paid in cash to certain finders on a
portion of the Offering , subject to co mpliance with the policies of the TSX Venture Exchange
(the “Exchange”) and applicable securities legislation. In addition, Red Cloud Financial Services ,
advisor to the Company in conne ction with the Offering , was issued 549,900 compensation
warrants as compensation for such services.
Insiders of the Company purchased an aggreg ate of 1,210,000 shares under t he Offering, for
aggregate consideration of $242,000. Such participation is co nsidered a "related party
transaction" within the meaning of Mul tilateral Instrument 61 -101 – Protection of Minority
Security Holders in Special Trans actions ("MI 61-101"). Participation by insid ers in the Offering
was exempt fro m: (i) the valuation requirement s of MI 61- 101 by virtue of the exemption
contained in Sec tion 5.5(b) of MI 61- 101, as the Company is listed only on the TSX Venture
Exchange; and (ii) the minority shareholder approval requirements of MI 61-101 by virtue of the
exemption contained i n Section 5.7(1)(a) of MI 61- 101, as at the time the Offer ing was agreed
to, neither th e fair market value of the subject matter of, nor the fair mark et value of the
consideration for, the Offering, insofar as it involved interested parties, exceeded 25 per cent of
the market capitalization of the Company.
All the shares issued pursuant to the Offering are subject to a hold period expiring four months
and one day after the date o f issuance. Subsequent to the completion of the O ffering, the
Company will have a total of 72,610,378 common shares outstanding. The Offering is subject to
final acceptance by the Exchange.
The securities offered pursuant to the Offering have not been regis tered under the United
States Securities Act of 193 3, as amended, and ma y not be offere d or sold in the United States
or to, or for the account or b enefit of, U.S. persons absen t re gistration or an applicable
exemption from registration requirements. This release does not constitute an offer for sale of
securities in the United States.
About Compass Gold Corporation
Compass is a Tier 2 issuer listed on the TSX - V. Through the 2017 acquisition of MGE and
Malian subsidiaries, Compass holds gold exploration pe rmits located in Mali that comprise the
Sikasso Property. The exploration permits are located in three sites in southern Mali with a
combined land holding of 867 km 2. The Sikasso Property is located i n t he sam e region as
several multi- million-ounce gold pr ojects, including Morila, Syama, K alana and Komana.
Mineralization hosted on adjacent and or n earby properties is not neces sarily indicative of
mineralization hosted on the Company’s property. The C ompany’s Mali-based technical team,
led in the field b y Dr. Madani Diallo and under the su pervision of Dr. Sandy M. Archibald,
P.Geo, is conducting the current exploration program on several anomalous areas of the
Sikasso Property, southern Mali.
Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of applicable
securities laws, including statements regarding the Company’s planned exploration work and
management appointments. Readers are cautioned not to place undue reliance on
forward‐looking information. Actual results and developments may differ materially from those
contemplated by such information. The statements in this news release are made as of the date
hereof. The Company undertakes no obl igation to update forward‐looking information except
as required by applicable law.
For further information please contact:
Compass Gold Corporation Compass Gold Corporation
Larry Phillips – Pres. & CEO Greg Taylor – Dir. Investor
Relations & Corporate
Communications
[email protected] [email protected]
T: +1 416-596-0996 X 302 T: +1 416-596-0996 X 301
Website: www.compassgoldcorp.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION S ERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.