- Compass Gold (CVB) is looking to raise up to C$2.5 million in a placement to support exploration work at its Sikasso property in southern Mali
- The company intends to issue 12.5 million common shares at a price of $0.20 each
- Phase 1 of exploration and drilling work is currently underway at the property, with initial results expected by the end of December
- Once the financing is complete, the company will progress with Phases 2 and 3, which will focus on a number of key targets
- Compass Gold is currently steady at $0.24 per share
Compass Gold (CVB) is looking to raise up to C$2.5 million in a placement to support exploration work at its Sikasso property in southern Mali.
Under the terms of the offering, the Toronto-based company intends to issue 12.5 million common shares at a price of $0.20 each.
In connection with the financing, the company said it may issues a finder’s fee to certain parties consisting of a cash fee equal to 6 per cent of the gross proceeds and warrants equal to 6 per cent of the total number of shares sold.
Located in the Sikasso Region of the country, the project covers 1,179 square kilometres and consists of five prospecting permits, all of which are owned by the company’s subsidiary Mali Gold Exploration.
Compass Gold launched a field work campaign in early October, which includes roughly 3,000 metres of initial drilling targeting the Tarabala and Samagouela trends.
Ground geophysics survey teams were also mobilised, focusing on 15 additional areas that have pronounced shallow soil gold anomalism.
“We are pleased to confirm that Phase 1 of exploration and drilling work following the end of the 2020 rainy season is underway, with the initial drilling results from this latest program on our exciting Tarabala and Samagouela trends anticipated before the end of December,” said Larry Phillips, President and CEO of Compass Gold.
“With this private placement, our exploration team can continue following up with the planned Phase 2 and Phase 3 drilling on multiple targets into 2021 without interruption or delay,” he added.
Compass Gold is currently steady at $0.24 per share, as of 2:13pm EST.
