Compass Intends to Extend Warrant Expiry Date
Compass Intends to Extend Warrant Expiry
Date
Toronto, Ontario--(Newsfile Corp. - May 21, 2025) -
Compass Gold Corp. (TSXV: CVB)
("
Compass"
or the "
Company
")
announced today that it intends to extend the expiry date of an aggregate of
7,298,668 common share purchase warrants (the "
Warrants
") to December 31, 2025 (the "
Warrant
Extension
").
All other terms of the Warrants, including the exercise price, will remain unchanged.
The Warrants were originally issued pursuant to a private placement of units, each unit comprised of one
common share and one Warrant, that closed on June 3, 2022. Prior to the Warrant Extension, the
Warrants were set to expire on June 2, 2025.
Each Warrant entitles the holder to acquire one common
share of the Company at an exercise price of $0.30.
Compass CEO
,
Larry Phillips
, said, "We are implementing this warrant extension after what has
become a two-year suspension of the Malian mining code, which has caused a deferral of the majority of
the activities that were planned over the course of the original warrant term."
An aggregate of 1,233,334 Warrants are held by insiders of the Company.
The extension of the
Warrants, therefore, constitutes a "related party transaction" within the meaning of Multilateral Instrument
61-101 -
Protection of Minority Shareholders in Special Transactions
("
MI 61-101
").
The Company is
relying on exemptions from the valuation and minority shareholder approval requirements of MI 61-101
contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Warrants subject
to the Warrant Extension does not exceed 25% of the market capitalization of the Company, as
determined in accordance with MI 61-101.
The Warrant Extension remains subject to final acceptance by the TSX Venture Exchange.
About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the 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 1,173 sq. km. The Sikasso Property is located in the
same region as several multi-million-ounce gold projects, including Morila, Syama, Kalana and Komana.
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 conducting the current exploration program. They are
examining numerous anomalies first noted 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
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/252843