Compass Gold Increases Size of Private Placement to $2.7 Million
Compass Gold Increases Size of Private Placement to $2.7 Million
Not for distribution to United States newswire services or for dissemination in the United States
TORONTO, April 15, 2019 -- Compass Gold Corp. (TSX-V: CVB) (“Compass” or the “Company”) announced today that it
intends to increase the size of its previously announced (see Compass news release dated April 8, 2019) non-brokered private
placement from up to 6,700,000 common shares to up to 9,000,000 common shares of the Company, at a price of $0.30 per
share, for aggregate gross proceeds of up to $2.7 million (the “Offering”). This increase from the proposed $2.0 million offering
is in response to heavy demand from existing shareholders and new participants.
The proceeds of the Offering will be used to further advance the Company’s ongoing exploration efforts at its Sikasso Property
in Southern Mali, as well as for general corporate purposes. The revised offering has been fully allocated and the Company is
proceeding towards an expected closing on or before April 24, 2019. Closing of this Offering is subject to the receipt of all
necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Larry Phillips, Compass Gold’s President and CEO, said, “While we were confident that we would be able to meet our
original target of $2 million, in fact, we received strong interest from existing shareholders that exceeded that amount. We also
received significant interest from key strategic investors wishing to participate. By increasing the amount of the Offering, we
have been able to accommodate most of the demand and strengthen our ownership group.”
He added, “On behalf of our Board and the entire Compass team, I appreciate the support of our new and existing
shareholders and we look forward to continuing to build on the excellent results we have already delivered at our Sikasso
properties.”
As reported, the Company is currently executing its latest exploration program involving a minimum of 1,000 metres of drilling
at Farabakoura on the Sikasso Property. This work is expected to be completed in the next week, and the next results
should be available by the end of the month. The funds received from this offering will allow the Company’s technical team to
follow the current drilling program with an aggressive drill campaign of up to 10,000 metres across the Farabakoura, Sankarani
and Yanfolila permit areas, which we plan to complete before the end of 2019.
Certain insiders of the Company are participating in the Offering and the Company may pay finder’s fees on a portion of the
Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. Beacon
Securities Limited and INFOR Financial Inc. have acted as advisors to the Company regarding this financing.
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.
The securities offered pursuant to the Offering have not been registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent
registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of
securities in the United States.
Participation by insiders in the Offering will be exempt from the valuation and minority shareholder approval requirements of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) by virtue of the
exemptions contained in Sections 5.5(b) and 5.7(1)(a) of MI 61-101.
About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX Venture Exchange (TSX-V).
Through the 2017 acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits 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 854 km 2. The Sikasso Property is located in the same region as several multi-million ounce gold projects,
including Morila, Syama, Kalana and Kodiéran. The Company’s Mali-based technical team, led in the field by Dr. Madani
Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is executing a new exploration program. They are examining
the first of numerous anomalies noted for further investigation in Dr. Archibald’s August 2017 “National Instrument 43-101
Technical Report on 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 obligation 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 SERVICES PROVIDER (AS THAT TERM IS DEFINED IN
THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY
OF THIS RELEASE.