• Compass Gold (CVB) is looking to raise up to C$3.4 million to fund exploration work at its Sikasso property in southern Mali
  • According to a November 30 announcement, the company planned to issue 12.5 million common shares at a price of $0.20 each
  • With strong support for the placement, the company now plans to issue 17 million shares at a price of $0.20 each
  • Phase 1 of the exploration work will include 3,000 metres of drilling, focused on the Tarabala and Samagouela target areas
  • Compass Gold is currently up 7.14 per cent to $0.22 per share

Compass Gold (CVB) is looking to raise up to C$3.4 million to fund exploration work at its Sikasso property in southern Mali.

According to a November 30 announcement, the Toronto-based company had intended to issue 12.5 million common shares at a price of $0.20 each.

With a strong level of demand for the placement, Compass has elected to increase its offering to 17 million shares, also at a price of $0.20 each.

In connection with the financing, the company said it may issue 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.

“The response from our existing shareholder to this offering has been very robust, and we appreciate their continued support,” said Larry Phillips, President and CEO of Compass Gold.

“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 recognise how far Compass has progressed and the tremendous potential to be realised over the coming year,” he added.

Located in Mali’s Sikasso Region, 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.

Phase 1 of the exploration work, which was launched in early October, will include 3,000 metres of drilling, targeting the Sikasso property’s Tarabala and Samagouela targets. Initial results from this program are expected towards the end of this month.

Compass Gold is currently up 7.14 per cent to $0.22 per share at 2:48pm EST.

More From The Market Online
Bulldozers building dams at a mine site.

Victoria Gold might never recover from Yukon mine disaster

Victoria Gold will likely be dealing with last month's 300-million-litre cyanide spill at its Eagle mine in the Yukon for years to come.
Hole Ranger 01, core boxes 51 & 52 showing mineralized interval 225.5 to 234.48m of granitoids crosscutting massive gabbrodiorite.

Sienna significantly increases size of Saskatchewan gold project

Sienna Resources (TSXV:SIE) significantly increases its acreage on the Stonesthrow Gold Project in Saskatchewan.
A large mining truck driving out of a tunnel.

Eric Sprott confirms conviction in Jaguar Mining with latest buy

Eric Sprott buys 750,000 Jaguar Mining (TSX:JAG) shares for C$2,625,000, signalling continued conviction in one of his largest investments.