Compass Gold Corporation (TSXV: CVB) has increased its cash reserves by C$1.7 million following the completion of an equity private placement that netted a number of new Australian, British and Canadian investors.
Among the new shareholders is Ontario-based Front Street Capital, a leading resource funds management group that has around $3 billion in assets.
Compass plans to use the funds for exploration work, particularly for assay and related costs of the recently completed drill program at the Solona target on the Yanfolila permit that is hosted within the Bale Gold province in Southern Mali.
The company is expecting to release further results from the Yanfolila exploration program in coming weeks.
James Henderson, chief executive officer, commented on the positive outcome: "Compass is pleased to have completed this private placement in the current difficult capital markets environment.
"We are also delighted by the addition of new shareholders. These include Australian, British, and Canadian investors, including Toronto, Ontario-based Front Street Capital, a leading resource funds management group.
Under the placement, Compass issued 28.5 million shares at C$0.06 each.
Compass Gold has recently been discovering gold at the Yanfolila permit.
Recent intersections include 15.65 metres at 2.01 grams per tonne (g/t) gold from surface and 26.5 metres at 3.59g/t gold from 5.4 metres, including 18 metres at 5.16g/t gold from 13.9 metres.
The remaining assays of the 30 hole program are likely to be highly anticipated given the promising results to date - and are expected in the near term.
The diamond drilling program at Yanfolila was recently extended to 5000 metres due to successfully identifying gold, with the additional 2000 metres providing Compass Gold with the opportunity to test the northern and southern extensions of the known Solona target.
Growing North American investor base
Compass has engaged FronTier Consulting to assist in growing the company's investor base in North America.
"With a diverse shareholder base, Compass has been making progress in developing its profile globally," Henderson said.
"We believe it is appropriate to use the expertise of FronTier to provide some focus on growing our North American investor base and expect FronTier will be a valuable partner."
Mali - a compelling country to explore for gold
Investors must remember that Mali is still a compelling country to explore for gold, with Mali currently Africa's third largest gold producer.
Add to this Dr. Madani Diallo - who has been directly responsible for discoveries of over 30 million gold ounces in Mali - highlighting Compass Gold has the ingredients in place for success.
Dr Diallo's gold discoveries were responsible for 50% of the entire Mali Gold production in 2010 of 1.2 million ounces, and he had direct leadership over the discoveries of Resolute Mining's (ASX: RSG) 7.9 million gold ounce Syama mine, Randgold Resources' (NASDAQ:GOLD) 8.5 million ounce Morila mine, Anglogold-Ashanti's (NYSE:AU) 13.5 million gold ounce Sadiola mine and IAMGOLD Corporation's (NYSE:IAG) 5.3 million gold ounce Essakane mine.
Dr Diallo is also a major shareholder in Compass Gold with a stake of 15.8%. Of interest, Australian and Asian investors account for 50% of the Compass Gold register.
Not lost on astute investors, Larry Phillips recently joined the board, with Phillips a founder of IAMGOLD Corporation (which has a market cap. of over $4 billion), and helped to guide IAMGOLD from a West African exploration junior to an annual million-ounce producer.
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