Compass Completes Second Tranche of Convertible Debenture Offering

Rhea-AI Summary

Compass Gold Corp. (TSXV: CVB) has completed the second tranche of its non-brokered private placement offering of convertible debenture units. The company raised $175,000 by issuing 175 units at $1,000 each. The offering is subject to TSX Venture Exchange approval, and securities issued have a four-month hold period.

Insiders participated in the offering, purchasing 30 units for $30,000. This related party transaction is exempt from certain regulatory requirements. The offering was not registered under the U.S. Securities Act and cannot be offered or sold in the United States without registration or exemption.

Positive

• Raised $175,000 through convertible debenture offering
• Insider participation demonstrates confidence in the company

Negative

• Dilution of existing shareholders due to convertible debentures
• Additional debt on the company's balance sheet

Toronto, Ontario--(Newsfile Corp. - July 17, 2024) - Compass Gold Corp. (TSXV: CVB) (Compass or the Company) is pleased to announce the completion of its previously announced offering, on a non-brokered private placement basis, of 175 convertible debenture units of the Company (the "Debenture Units"), at a price of $1,000 per Debenture Unit, for aggregate gross proceeds of $175,000 (the "Offering"). For additional details concerning the Offering and the Debenture Units, please see Compass news release dated July 11, 2024.

The closing of the Offering is subject to the final approval of the TSX Venture Exchange (the "TSX-V"). All securities issued pursuant to the Offering are subject to a statutory four-month hold period expiring four months and one day after the closing date of the Offering.

Insiders of the Company purchased an aggregate of 30 Debenture Units under the Offering, for aggregate consideration of $30,000. Such participation is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Participation by insiders in the Offering was exempt from (i) the valuation requirements of MI 61-101 by virtue of the exemption contained in Section 5.5(b) of MI 61-101, as the Company is listed only on the TSX Venture Exchange; and (ii) the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101, as at the time the Offering was agreed to, neither the fair market value of the subject matter, nor the fair market value of the consideration for, the Offering, insofar as it involved interested parties, exceeded 25% of the market capitalization of the Company.

All dollar amounts referred to in this press release are expressed in Canadian dollars.

None of the securities issued in connection with the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Compass Gold Corp.

Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX- V. Through the 2017 acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits located in Mali that comprise the Sikasso Property. The exploration permits are located in four sites in southern Mali with a combined land holding of 1,173 sq. km. The Sikasso Property is located in the same region as several multi-million-ounce gold projects, including Morila, Syama, Kalana and Komana. The Company's Mali-based technical team, led in the field by Dr. Madani Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is conducting the current exploration program. They are examining numerous anomalies first noted in Dr. Archibald's August 2017 "National Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali."

Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the completion of the Offering, the proposed use of proceeds of the Offering and the establishment and development of the Tarabala Project. Readers are cautioned not to place undue reliance on forward‐looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward‐looking information except as required by applicable law.

For further information please contact:

Compass Gold Corporation	Compass Gold Corporation
Larry Phillips - Pres. & CEO	Greg Taylor - Dir. Investor Relations & Corporate Communications
lphillips@compassgoldcorp.com	gtaylor@compassgoldcorp.com
T: +1 416-596-0996 X 302	T: +1 416-596-0996 X 301

 

Website: www.compassgoldcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216800

FAQ

How much did Compass Gold Corp. (TSXV: CVB) raise in its recent convertible debenture offering?

Compass Gold Corp. raised $175,000 by issuing 175 convertible debenture units at $1,000 each in its recent offering.

Was there insider participation in Compass Gold Corp.'s (TSXV: CVB) recent convertible debenture offering?

Yes, insiders of Compass Gold Corp. purchased 30 debenture units for a total of $30,000 in the recent offering.

What is the hold period for securities issued in Compass Gold Corp.'s (TSXV: CVB) recent offering?

Securities issued in Compass Gold Corp.'s recent offering are subject to a statutory four-month hold period.

Is Compass Gold Corp.'s (TSXV: CVB) recent convertible debenture offering registered under the U.S. Securities Act?

No, the securities issued in Compass Gold Corp.'s recent offering are not registered under the United States Securities Act of 1933 and cannot be offered or sold in the U.S. without registration or exemption.