Compass Gold Corporation (TSXV: CVB) intends to increase its cash position by rising up to C$500,000 through a non-brokered private placement.
The company plans to place up 14.3 million shares at C$0.035 - to raise the funds.
Net proceeds will go towards the payment of current creditors, exploration work in Mali through its wholly owned subsidiary Africa Mining SARL, and for general working capital purposes.
Specifically, $98,000 of the proceeds will be applied to outstanding creditors, $275,000 for operational expenses on the Company's projects in Mali, $50,000 towards its CEO's salary, and the balance to general operating expenses.
Ian Spence was recently appointed the CEO, with a visit to Mali forming part of the review of the current exploration strategy.
Compass Gold is focused on gold exploration in Mali, which is Africa's third largest gold producer and through its wholly owned subsidiary, Africa Mining SARL, owns a 100% interest in four gold exploration permits (Yanfolila, Dandoko, Kolondieba, and Solabougouda).
The company also holds applications over a further four areas, Mousala, Sirakourou, Yanfolila East, and Kolondieba Nord) covering an aggregate of 1,138 square kilometres in key gold-producing regions in south west Mali, West Africa.
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