Cassidy Gold proposes financing and 1 for 3 share consolidation

Cassidy Gold Corp. has announced that it arranged a non-brokered private placement of up to 20,000,000 units at a price of $0.05 per unit for aggregate proceeds of up to $1,000,000. Each unit will consist of one common share of the company and one non-transferable share purchase warrant, each warrant entitling the holder to purchase an additional common share at a price of $0.10 per share for a period of one year from the completion of the offering. Shares acquired by the places, 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 in amounts are still determined. The Company also announces that upon completion of the financing described above, it will effect, subject to shareholder and regulatory approval, a consolidation of its issued common shares on the basis of 3 old shares for 1 new share. Presumably, the company will call a special shareholders meeting on or about July 30, 2009 to seek shareholder approval of the consolidation. Initial scoping results for Cassidy Gold's Kouroussa Gold Project, Guinea, West Africa has showed that Kouroussa could produce an average of 79,000 ounces of gold annually at a cash operating cost of $484 (U.S.) per ounce over a six-year mine life. Initial capital costs for the Kouroussa project are estimated to be $97-million, with a further $11-million estimated for sustaining capital. Company management believes that more work is warranted to move the project toward feasibility including trying to reduce capital and operating cost estimates and investigating alternative mining configurations.