Cassidy Proposes Financing and 1 for 3 Share Consolidation

Cassidy Gold Corp. (the "Company") (TSX Venture: CDY) has arranged a non-brokered private placement of up to 20,000,000 units with prices $ 0.05 per unit for aggregate results of up to $ 1,000,000.


Each unit will consist of one part of the company and one non-transferable share purchase warrant, each warrant entitling the holder to purchase additional common shares at a price $ 0.10 per share for a period of one year from the completion of the offer. Shares owned by placees, and shares that can be obtained on exercise of share purchase warrant, which will be continued during the four years plus one day from the date of completion of the financing in accordance with securities legislation. Finder's fee in the amount not yet determined can be paid to the person who introduced the company to investors. Results will be used for working capital, and forced polarization geophysical surveys and further drilling on the Company Kouroussa Gold Project, Guinea West Africa.

The Company also announced that after the completion of the above, it will apply, subject to regulatory approval and the shareholders, the consolidation of the issued common shares on the basis of 3 old shares for 1 new share. The Company intends to call a special meeting of shareholders on or about 30 July 2009 to obtain shareholder approval of the consolidation.

As disclosed in the Company news release of 18 February 2009, "Early Scoping Results for Cassidy Gold's Kouroussa Gold Project, Guinea, West Africa," Coffey Mining recommended more work focused on the discovery of additional "new" is. Permission has been extended, and wait for the completion of financing at this time, the project on care and maintenance.

Scoping studies have concluded that Kouroussa can produce an average of 79,000 ounces of gold per year with cash operating cost of $ 484 (U.S.) per ounce during the six years I lived.

This study proposes open-pit mining of a series of pits utilize contract miners. Ore will be processed through a conventional gravity-CIP (carbon-in-pulp) plant with a design capacity of one million tons per annum ( "Mtpa"). The average gold recovery is 94.5 percent and the strip ratio is 6.7:1. Initial capital cost for Kouroussa project which is estimated to be $ 97 million, with over $ 11 million is estimated to maintain the capital.