Compass Gold Corporation Closes C$3,500,000 Private Placement
24.11.2011 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Nov. 24, 2011) - Compass Gold Corporation (TSX VENTURE: CVB) (the "Company") announces the completion of its private placement announced November 7, 2011 and has issued 35,000,000 units at a price of C$0.10 per unit for gross proceeds to the Company of C$3,500,000 (the "Offering"). Each unit consists of one common share and one transferable common share purchase warrant of the Company. Each common share purchase warrant entitles the holder to acquire one additional common share of the Company at a price of $0.15 per common share at any time prior to 5:00 p.m. (Vancouver time) on May 24, 2013.The Offering was over-subscribed. Net proceeds will be applied to exploration work on the four gold exploration permits in Mali, West Africa in which the Company holds an interest through its 51% ownership interest in Africa Mining SARL ("Africa Mining"), and for general working capital purposes.
The Company engaged Argonaut Securities Pty. Limited (an Australian broker headquartered in Perth) ("Argonaut") to act as its agent in connection with the Offering of 25,000,000 of the units. The Company paid net commissions of up to 7% of the gross proceeds of the Offering to eligible finders including Argonaut and issued an aggregate of 1,968,050 non-transferable compensation options to such finders. Each compensation option entitles the holder to subscribe for one unit of the Company at any time prior to 5:00 p.m. (Vancouver time) on November 24, 2013. The units issuable on exercise of the compensation options shall have the same terms as the units issued under the Offering, except that the warrants comprising the units will be non-transferable.
All securities issued or issuable under the Offering are subject to a four-month hold period expiring on March 25, 2012, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada.
The Company also welcomes Regent Pacific Group Limited, a significant diversified mining investment group based in Hong Kong, as a cornerstone shareholder in the Company.
About Compass Gold Corporation
Compass Gold Corporation is a Tier 2 mining issuer listed on the TSX Venture Exchange and focused on gold exploration in Mali, Africa's 3rd largest producer of gold. Compass has acquired a 51% interest in Africa Mining, which owns four gold exploration permits (Yanfolila, Dandoko, Kolondieba and Solabougouda) as well as an authorization to explore, Mousala, covering a total of 888 sq km's in key gold producing regions in south west Mali, West Africa. Further information is available at www.compassgoldcorp.com.
COMPASS GOLD CORPORATION
James Henderson
President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of teh TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information
Compass Gold Corporation
Investor Relations
1-604-638-8067
1-604-648-8105 (FAX)
info@compassgoldcorp.com
www.compassgoldcorp.com