KAMLOOPS, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2005) - Cassidy Gold Corp. (the "Company") (TSX VENTURE:CDY) announces that it has obtained a copy of a Statement of Claim that was filed, on December 19, 2005, with the Supreme Court of British Columbia by, the Company believes, an individual (the "Plaintiff") purporting to act on behalf of Guinea Golden Mines S.A.R.L. ("GGM"), which names the Company and James T. Gillis, the President and CEO of the Company, as co-defendants. To date, neither the Company nor Mr. Gillis has been served with the Statement of Claim.
By an agreement dated October 4, 2002 (the "Option Agreement") between the Company and GGM, the Company was granted an option to acquire a 100% interest, subject to a 15% State participation, in the Kouroussa exploration permit (the "Property") located in the Kouroussa region of the Republic of Guinea, West Africa. On March 11, 2004, GGM's permit for the Property expired in accordance with its terms. On May 13, 2004, a permit for the Property was issued in favour of the Company, which now owns a 100% interest therein, subject to a 15% State participation.
The Statement of Claim contains several allegations, including the refusal of the Company to protect GGM's rights under the permit, causing the permit to lapse and a new permit to be issued to the Company. The Statement of Claim also alleges that the Company acted in bad faith, in breach of contract and in a manner contrary to its fiduciary and other duties owed to GGM as trustee of GGM's interest in the permit and project. Under the Statement of Claim, the Plaintiff is seeking, among other things, a declaration that the Company holds the permit to explore the Property in trust for, or on behalf of, GGM, judgment against the Company for US$105,000 being amounts allegedly owing under the Option Agreement, the issuance by the Company to GGM of 300,000 common shares of the Company, unspecified damages and punitive damages, and certain other relief.
The Company and Mr. Gillis categorically deny the allegations made by the Plaintiff in the Statement of Claim and question the Plaintiff's relationship to, and authority to act on behalf of, GGM. If served with the Statement of Claim, the Company and Mr. Gillis intend to vigorously defend against such allegations.
On behalf of the Board of Directors
Cassidy Gold Corp.
James T. Gillis, President
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Cassidy Gold Corp.
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