|
Cassidy Gold Corp. ("Cassidy") announces that it has entered into an agreement with Island Arc Exploration Corp. ("Island Arc") to acquire up to a 70% interest in the Nassile Gold Project (the "Property") located in Niger, West Africa. As consideration for the option and upon acceptance from the TSX Venture Exchange (the "Exchange"), Cassidy will pay $100,000 and issue 200,000 common shares in the capital of Cassidy to Island Arc. In order to earn a 51% interest in the Property, Cassidy is required to spend $1,000,000 on exploration expenditures on or before the first anniversary of receipt of Exchange approval. In order to earn an additional 9% for a total of 60% interest in the Property, Cassidy is required to incur an additional $2,000,000 in exploration expenditures on or before the third anniversary of receipt of Exchange approval. Cassidy shall be entitled to earn an additional 10% interest, for a total 70% interest in the Property by advising Island Arc of its intention to complete a bankable feasibility study for the Property at its sole cost within a period of five years from the exercise of the option. Island Arc is a public company and listed on the Exchange under the symbol IAX. As certain directors and officers of Island Arc are also directors and officers of Cassidy, Island Arc and Cassidy are considered to be non-arm's length parties pursuant to the policies of the Exchange.
Cassidy also announces that it will conduct a non-brokered private placement of up to 10,000,000 units of Cassidy (the "Units") at a price of $0.20 per Unit for aggregate proceeds of up to $2,000,000. Each Unit will consist of one common share in the capital of Cassidy and one half of one non-transferable share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a price of $0.30 for two years from the closing of the offering, subject to accelerated expiry in certain circumstances. Shares acquired by the placees, and shares which may be acquired upon the exercise of the share purchase warrants, 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. Finder's fees and warrants in amounts yet to be determined may be paid to persons who introduce Cassidy to investors.
Funds raised by this private placement will be used to undertake a drill program on the Property and for further exploration work on Cassidy's 100% owned Kouroussa Gold Project, located in Guinea, West Africa.
The Nassile permit covers 576.7 square kilometres of the Sirba greenstone belt in the lower Proterozoic Birimian volcano-sedimentary series adjacent to the Burkina Faso border 100 kilometres southwest of Niamey, the capital of Niger. The Nassile permit lies 35 kilometres south of the Samira Hill gold mine and 200 kilometres southeast of IAMGold's Essakane Project.
Based on fieldwork completed in 2008 and 2009, Island Arc geologists have identified a number of prospects hosting gold mineralization along at least 20 kilometres of the regional, northeast-trending Tampena shear zone. These targets include gold-quartz veins, potential sheeted veins, and quartz stockwork vein systems in a variety of host rocks, representing both high-grade and bulk tonnage targets. The planned program, consisting of reverse circulation (RC) and aircore or rotary air blast (RAB) drilling, is aimed at following up on these priority gold targets as proposed in an Island Arc news release dated October 13, 2009.
For additional information, please contact: James T. Gillis, President & CEO
Telephone: (250) 372-8222
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. |