MOU offers modular plant construction solution and operating framework to support near-term pathway to production
Toronto, Ontario--(Newsfile Corp. - October 27, 2026) - Compass Gold Corp. (TSXV: CVB) (OTC Pink: COGDF) ("Compass" or the "Company") is pleased to announce it has entered into a non-binding memorandum of understanding ("MOU") with Mali-based INDUSTRIE MALIENNE POUR L'AGRICULTURE ("IMAGRI" or the "Partner"). The MOU establishes a framework to advance the construction of a modular gravity concentration plant capable of producing a saleable gold concentrate by processing material from the Company's 100%-owned Massala Small Mine Project ("Massala" or the "Project") in southern Mali, providing a potential near-term pathway toward gold production.
"While we await the issuance of our Small Mine Permit, our team remains firmly focused on advancing the work necessary to move Massala into gold production as quickly and responsibly as possible," commented Larry Phillips, President and CEO of Compass. "The signing of this MOU demonstrates our commitment to taking concrete steps now to position Compass to move quickly once the permit is received. The proposed gravity concentration plant is designed around a simple and conventional processing approach, while providing flexibility to scale or relocate the operation as we identify subsequent small mine opportunities within our expansive land package.
"We are particularly pleased to be working with IMAGRI, a well-respected Malian company with more than 25 years of experience and a demonstrated history of successfully delivering projects in Mali and neighboring West African countries. In evaluating our plant construction options, we considered proposals from other contractors that would have required advance payments exceeding US$5 million before the commencement of production. The proposed arrangement with IMAGRI offers a substantially more capital-efficient pathway to production, significantly reducing our anticipated upfront funding requirements. Additionally, IMAGRI's extensive local knowledge, technical capabilities and proven track record make them a valuable partner as we work toward bringing Massala into production."
MOU Highlights
A simple, modular and scalable processing solution is proposed with a relatively straightforward flowsheet comprising an apron feeder, crushing module, scrubber, screening module, conveyors, jig modules and concentrator module;
IMAGRI to supply and deploy the principal gravity processing plant and provide related installation, commissioning, maintenance and support services; IMAGRI has also proposed providing mining services for the Project;
Proposed facility is envisioned to process approximately 1,000 tonnes per day of mineralized material, subject to ongoing engineering and technical studies, targeting 90% operating availability and an initial 60% gold recovery; and
Parties intend to negotiate a definitive agreement ("Definitive Agreement"), covering scope of work, construction schedule, capital requirements, operating responsibilities and other commercial terms by year end 2026.
Under the terms of the MOU, the parties will work together to advance the design, engineering, and planning for the proposed gravity concentration plant, with the aim of signing a Definitive Agreement by the end of 2026. The Definitive Agreement is expected to address plant construction, commissioning and a proposed mining services operating framework for Massala.
About Compass Gold Corp.
Compass Gold is a mineral exploration company focused on advancing its flagship Massala Gold Project, which is located within its large, highly prospective land package (the Sikasso Property) in southern Mali. The Sikasso Property includes three permit areas totaling ~900 sq. km in a region hosting several multi-million-ounce gold deposits1, including Morila, Syama, Kalana and Komana.
Compass's Mali-based technical team, led in the field by Dr. Madani Diallo and overseen by Dr. Sandy Archibald, P.Geo., is executing the current exploration program, following up on numerous anomalies first outlined in Dr. Archibald's August 2017 NI 43-101 Technical Report on the Sikasso Property.
About IMAGRI
Founded in 2000 and headquartered in Bamako, Mali, IMAGRI is an established mining and industrial construction company with more than 25 years of experience serving the mining sector in West Africa. A member of the WACOM Group, IMAGRI specializes in the engineering, fabrication, construction and installation of mining and industrial infrastructure, including civil works, structural steel fabrication, mechanical assembly and equipment installation. Through its operations in Mali and the broader WACOM Group's regional presence, IMAGRI has contributed to the development of numerous major mining projects, including gold mining operations in Mali, and offers integrated technical and construction services to support mine development.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws, including statements regarding the Company's planned exploration work and management appointments. 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.
The Company's decision to advance toward production at Massala is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and higher economic and technical risks of failure associated with this development approach, including risks regarding the yield and continuity of mineralized structures.
1 Mineralization on adjacent properties is not necessarily indicative of mineralization on the Company's properties. Any references to exploration results on adjacent properties are provided for information only and do not imply any certainty of achieving similar results on the Company's properties.
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 news release.
For further information, please contact:
| Compass Gold Corporation | Compass Gold Corporation |
| Larry Phillips - Pres. & CEO | |
| lphillips@compassgoldcorp.com | |
| T: +1 416-596-0996 X 302 | T: +1 416-596-0996 X 301 |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321052
