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Cassowary Provides Update ON Proposed Qualifying Transaction and Concurrent Private Placement

Financings Mergers & Acquisitions

CASSOWARY CAPITAL CORPORATION LIMITED

CASSOWARY PROVIDES UPDATE ON PROPOSED QUALIFYING TRANSACTION AND

CONCURRENT PRIVATE PLACEMENT

NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY

WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES

LAWS.

For Immediate Release

Calgary, Alberta August 12, 2020

Cassowary Capital Corporation Limited (TSXV – BIRD.P) (“BIRD” or the “Company”) announces that in

connection with its previously announced “Qualifying Transaction” (the “Transaction”), wherein it proposes

to acquire Western Gold Exploration Limited (“WGE”), a private company formed under the laws of England

and Wales, that holds minerals interests in Argyll County in western Scotland, and which mineral interests

include the Knapdale property (the “Knapdale Property ”) and Lagalochan properties (see the Company’s

June 1, 2020, June 19, 2020 and July 20, 2020 press releases), it continues to work diligently to advance the

Transaction and towards closing its previously announced concurrent non-brokered private placement of

subscription receipts (see the Company’s June 19, 2020 and July 20, 2020 press releases) (the “Private

Placement”).

The Company now expects: (i) it will issue CAD$1,700,000 worth of subscription receipts of the Company

when it closes the Private Placement; and (ii) to pay a cash finder's fee of between 3% to 6% of the gross

proceeds of the Private Placement to arm's length parties in respect of the Private Placement.

A National Instrument 43-101 – Standards of Disclosure for Mineral Projects compliant geological report (the

“Geological Report ”) has been prepared in respect of the Knapdale Property and is currently being

reviewed by the TSX Venture Exchange (the “Exchange”). Information regarding the Geological Report and

WGE’s mining interests will be disclosed in detail in the Information Circular being prepared in connection

with the Transaction, and the Geological Report will be filed under the Company’s SEDAR profile at

www.sedar.com when the aforementioned Information Circular is similarly filed on SEDAR.

Finally, the Company has made the determination that in connection with the Transaction it will apply for a

waiver from sponsorship requirements pursuant to the policies of the Exchange.

Further Information

BIRD will issue additional news releases related to the Transaction, the Private Placement and other material

information as it becomes available.

For further information, please contact:

Stuart Olley

Chief Executive Officer and Director

Cassowary Capital Corporation Limited

[email protected]

403 618 4900

Completion of the Transaction is subject to a number of conditions, including but not limited to, Exchange

acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder

approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained.

There can be no assurance that the transaction will be completed as proposed or at all.

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Investors are cautioned that, except as disclosed in the management information circular or filing statement

to be prepared in connection with the Transaction, any information released or received with respect to the

Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a

capital pool company should be considered highly speculative

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has

neither approved nor disapproved the contents of this news release.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

This press release is not an offer of the Company’s securities for sale in the United States. The Company’s

securities may not be offered or sold in the United States absent registration or an available exemption from

the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and

applicable U.S. state securities laws. The Company will not make any public offering of its securities in the

United States. The Company’s securities have not been and will not be registered under the U.S. Securities

Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be

any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release

includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-

looking statements include, but are not limited to, statements with respect to the structure, terms, conditions

and proposed timing for completion of the Transaction and the Private Placement; the ability of BIRD and

WGE to complete the Transaction and the Private Placement; the receipt of all necessary shareholder,

Exchange, securities regulatory authority and other third party consents and approvals; the receipt by BIRD

of a waiver from the sponsorship requirements of the Exchange and the resumption in trading of the common

shares of the Company; and the Company’s future business operations and results. Forward-looking

statements are necessarily based upon a number of estimates and assumptions that, while considered

reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause the

actual results and future events to differ materially from those expressed or implied by such forward-looking

statements. Such factors include, but are not limited to: general business, economic, competitive, political

and social uncertainties; delay or failure to receive shareholder or regulatory approvals; and the results of

continued development, marketing and sales. There can be no assurance that such statements will prove to

be accurate, as actual results and future events could differ materially from those anticipated in such

statements. Accordingly, readers should not place undue reliance on forward-looking statements. BIRD

disclaims any intention or obligation to update or revise any forward-looking statements, whether because of

new information, future events or otherwise, except as required by law.

NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH

THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.