Compass Gold Signs MOU for the Construction of a Gravity Concentration Plant at the Massala Gold Project, Mali

Compass Gold Corporation (TSXV: CVB) has entered into a non-binding Memorandum of Understanding (MOU) with IMAGRI, a Mali-based industrial construction and mining services company. The agreement outlines the construction of a modular gravity concentration plant at the company’s 100%-owned Massala Small Mine Project in southern Mali.

The proposed plant targets a processing capacity of approximately 1,000 tonnes per day, with 90% operating availability and an initial 60% gold recovery rate. IMAGRI will supply the processing plant, handle installation, commissioning, and maintenance, and potentially provide mining services. The arrangement is described as a capital-efficient pathway, avoiding large advance payments that other contractors have previously noted as exceeding US$5 million.

The modular design allows for scalability or relocation to other small mine opportunities within Compass's Sikasso Property land package. The parties aim to negotiate a Definitive Agreement by the end of 2026, contingent upon the issuance of the Small Mine Permit.

Compass Gold Corporation (CVB) has entered into a memorandum of understanding that marks a logical, incremental step in the development of its Massala project. This agreement follows the completion of Phase 1 drilling and positive metallurgical test results scheduled for mid-2026. By securing a local partner with a capital-efficient structure, the deal aims to minimize upfront cash requirements and de-risk the plant construction timeline and capital outlay.

The announcement confirms management's stated strategy to pursue a streamlined, high-grade small-mine approach. It does not introduce fundamentally new data or alter the project's risk profile. As the market was already aware of the metallurgical results and the permitting timeline, the news is expected to be viewed as routine progress rather than a market-moving catalyst. Financial impact remains speculative until the Definitive Agreement is signed and the Small Mine Permit is issued.

Compass Gold Corporation (CVB) is a pre-revenue exploration and development company focused on the Massala Gold Project. The project is located on the 1,173 sq km Sikasso Property in southern Mali, along the 15 km Tarabala Trend. The company is pursuing a Small Mine Permit under Mali's new mining code, targeting a streamlined, high-grade processing approach.

Phase 1 diamond drilling, comprising 42 holes for a total of 1,457.3 m, confirmed continuous gold mineralization across a 340 m strike, with high-grade intervals and visible gold. Metallurgical testing indicates high gravity recoverable gold content of 51-61% and excellent cyanide leaching recovery of 95.3%, supporting a simple, low-cost milling flowsheet. Management targets commercial production in early Q2 2026, contingent on permitting and plant construction.