Compass Gold Closes Private Placement of Units for Gross Proceeds of $5,398,330

Core Viewpoint - Compass Gold Corporation successfully completed a private placement, raising approximately $5.4 million through the issuance of 28,412,264 units at a price of $0.19 per unit, exceeding the initial target of $5 million due to strong demand [1][2]. Group 1: Offering Details - The offering consisted of units, each comprising one common share and one common share purchase warrant, with warrants exercisable at $0.25 until February 12, 2029 [2]. - The net proceeds will be allocated to the evaluation and establishment of a gold processing facility at the Massala prospect, drilling, metallurgical studies, bulk sampling, and general corporate purposes [3]. Group 2: Agent and Fees - Canaccord Genuity Corp. acted as the sole agent and bookrunner for the offering, receiving a cash commission of 6.0% of the gross proceeds, reduced to 2.0% for units sold to purchasers on the president's list [5]. - The agent was also issued 1,225,020 non-transferable broker warrants, exercisable at $0.19 until February 12, 2028 [5]. Group 3: Insider Participation - Insiders purchased a total of 636,842 units for approximately $121,000, which is classified as a related party transaction [7]. - The participation was exempt from certain valuation and minority shareholder approval requirements due to the company's market capitalization and the nature of the transaction [7]. Group 4: Company Background - Compass Gold is a public company incorporated in Ontario and is a Tier 2 issuer on the TSX-V, holding gold exploration permits in Mali with a combined area of approximately 900 square kilometers [10]. - The company's exploration permits are located in a region known for several multi-million-ounce gold projects, indicating potential for significant resource development [10].