Cassidy Gold : Announces US$12,000,000 Loan And Up To US$9,500,000 Private Placement

Tue Jul 22, 2014
Cassidy Gold Corp. Announces US$12,000,000 Loan And Up To US$9,500,000 Private Placement

Cassidy Gold Corp. ("Cassidy" or the "Company") announces that, subject to acceptance by the TSX Venture Exchange, it proposes borrowing US$12,000,000 from Alchemists Inc. ("AI"), a wholly owned subsidiary of an existing shareholder of Cassidy, pursuant to a convertible debenture. The debenture will not bear interest and is payable on maturity, 12 months from the date of advance of funds. Cassidy may repay the debenture in whole or in part prior to maturity without notice, bonus or penalty, at its sole discretion. The debenture is convertible into common shares of Cassidy at the option of AI at a deemed price of CAD$0.05 per share, but is subject to the conditions that it cannot be converted until approval from the shareholders of Cassidy for the creation of a new control person, and approval from the TSX Venture Exchange, have been received. Cassidy expects to call a shareholders meeting to seek such approval on or about September 25, 2014.

Cassidy also announces that it will conduct a non-brokered private placement of common shares of the Company (the "Shares") at a price of CAD$0.05 per Share for aggregate proceeds of up to US$9,500,000. Such number of Shares amounting to gross proceeds of US$5,500,000 will be purchased by AI. The balance of the private placement will be offered to existing shareholders of the Company if they choose to participate, in reliance on and subject to the requirements of, BC Instrument 45-534 and any other investors wishing to participate. Shares acquired by AI and the placees will be subject to a hold period of four months plus one day from the date of completion of the financing in accordance with applicable securities legislation. The Shares will not be issued to AI until the shareholders of Cassidy have approved the creation of a new control person at its upcoming AGM.

No finders' fees will be paid in connection with the loan or the private placement financing.

Cassidy will use the proceeds from the convertible debenture and private placement to fund the capital expenditure requirements for the development of the Kouroussa Gold Project to commencement of gold production. The proceeds will also be used by Cassidy for general corporate purposes.

Development will include the purchase of a complete Gravity Gold Recovery Plant consisting of a 35 ton/hour milling circuit, 60 ton/hour crushing circuit and 100 ton/hour alluvial plant, inclusive of Falcon concentrators, to be built on site at Kouroussa. The project will be developed as both an open pit and an underground operation.

Cassidy's CEO, Marion Bush, said "This is a major milestone in the life of Cassidy and will see us turning from explorer into gold producer. Cassidy is pleased to be able to offer new and existing shareholders the opportunity to support the Company as it transitions from explorer to near term gold producer."

About Cassidy Gold Corp.

Cassidy is a Canadian mineral development company focused on gold discovery in the Republic of Guinea, West Africa. Cassidy is listed on the TSX Venture Exchange under the symbol "CDX". The Company owns a 100% interest, subject to a 15% state participation, in the Kouroussa Gold Project in the Republic of Guinea.

For additional information, please contact:

James T. Gillis, President
Telephone: [phone]

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Cassidy Gold Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Cassidy Gold Corp.'s management on the date the statements are made. Except as required by law, Cassidy Gold Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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.