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Compass Gold (TSXV:CVB) raises over $3M for drilling work in Mali

Mining
TSXV:CVB
16 December 2020 14:18 (EDT)

Compass Gold (CVB) has raised more than C$3.6 million to fund drilling work at its Sikasso property in southern Mali.

Under the terms of the placement, which was announced on November 30 this year and upsized on December 7 and December 9, the Toronto-based company issued just over 18.18 million common shares at a price of $0.20 each.

1.21 million of these shares were purchased by insiders of the company for a total of $242,000.

“As with prior offerings, we have used this opportunity to add several institutional shareholders who have recognised the quality of our properties and the experienced team conducting the exploration,” said Larry Phillips, President and CEO of Compass Gold.

“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,” he added.

Compass recently launched Phase 1 of a 17,000-metre drilling program, which will focus initially on targets within the Sikasso property’s Samagouela Trend before turning to the Tarabala Trend. The first results from this work are expected in late December.

With the financing now complete, the company says it will be able to seamlessly transition into Phases 2 and 3 of the program without interruption, which have been planned to follow-up on a number of key targets.

“With the end of the rainy season in Mali, we 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 intercepted significant gold mineralisation,” said Madani Diallo, Director and Exploration Manager of Compass Gold.

“Those large trends host just a few of the growing number of highly-prospective gold targets on our Sikasso property,” he continued.

Compass Gold is currently up 11.63 per cent to $0.24 per share at 12:22pm EST.

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