Compass Gold Mali Corp issued a total of 30,000,000 common shares and 10,000,000 share purchase warrants of Compass Gold to Africa Mining in consideration for the acquisition
Each warrant authorizes the holder to purchase one common share of the Company at a price of $0.30 per share until 13 December 2015.
The shares and warrants have been placed in escrow and will be released as to 10% effective at the closing and 15% every six months thereafter for a period of three years.
Compass Gold can reduce the existing net smelter returns royalty held by Africa Mining over its Yanfolila, Dandoko and Kolondieba properties from a 2% royalty to a 1% royalty through the payment of $1,000,000 within five years following closing.
Â
