Cassidy Gold : Announces Closing of US$12,000,000 Convertible Debenture

Tue Aug 5, 2014
Cassidy Gold Corp. Announces Closing of US$12,000,000 Convertible Debenture

Cassidy Gold Corp. ("Cassidy" or the "Company") is pleased to announce closing of a US$12,000,000 convertible debenture issued to Alchemists Inc. ("AI"), as previously announced by Cassidy on July 22, 2014. A portion of the amount under the debenture has been advanced to Cassidy for general corporate purposes and the balance will be directly disbursed by AI to carry out exploration and development on behalf of Cassidy on its Kouroussa Gold Project in the Republic of Guinea.

The debenture does 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. Subject to approval by Cassidy's shareholders for the creation of a new control person of Cassidy (such approval to be sought by Cassidy at a shareholder meeting to be held on September 25, 2014) and final acceptance by the TSX Venture Exchange, the debenture is convertible into common shares of Cassidy at the option of AI at a deemed price of CAD$0.05 per share. The convertible debenture is subject to a hold period until December 6, 2014, in accordance with applicable securities legislation.

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

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.