KAMLOOPS, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2005) - Cassidy Gold Corp. - (the "Company") (TSX VENTURE:CDY) announced today that it has entered into an agreement to complete a private placement (the "Offering") of up to 8,000,000 units of the Company ("Units") at a price of C$0.50 per Unit for gross proceeds of up to C$4,000,000. Jennings Capital Inc. has been retained by the Company to act as lead agent (the "Agent") in connection with the Offering. The Offering will be carried out on a best efforts basis. The Agent has the right to exercise an option at any time up to 48 hours prior to the closing of the Offering to increase the size of the Offering by up to an additional 4,000,000 Units pursuant to the terms of the Offering. Each Unit will consist of one common share of the Company and one warrant (a "Warrant") to purchase one common share of the Company. Each Warrant will entitle the holder thereof to acquire one common share of the Company at a price of C$0.75 for a period of 24 months after the date of the closing of the Offering.
The net proceeds of the Offering are expected to be used for the continued exploration of the Kouroussa Project of the Company located in Guinea and general corporate purposes. The Offering is anticipated to close on or about December 22, 2005, subject to receipt of all necessary regulatory approvals. The securities of the Company forming a part of the Units will be subject to the normal four month hold period in Canada.
The Company has agreed to pay the Agent a cash commission of 8% of the gross proceeds of the Offering and to issue to the Agent broker warrants entitling the Agent to purchase common shares of the Company in an amount equal to 8% of the number of Units sold under the Offering at an exercise price of C$0.50 per common share until the date that is 24 months after the closing of the Offering.
Cassidy Gold Corp. is a gold exploration and development company listed on the TSX Venture Exchange (symbol CDY). Cassidy's principal asset is its 100% interest, subject to a 15% state participation, in the Kouroussa and Siguiri gold properties in Guinea, West Africa.
On behalf of the Board of Directors
Cassidy Gold Corp.
James T. Gillis, President
This press release may be accessed at Cassidy Gold Corp.'s website: www.cassidygold.com and at www.sedar.com.
If you wish to be placed on Cassidy Gold Corp.'s e-mail press release list, please contact us at cassidygold@telus.net.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cassidy Gold Corp.
Jim Gillis
President
(250) 372-8222
(250) 828-2269 (FAX)
cassidygold@telus.net
www.cassidygold.com
