Kakanda Resources Corp.

Kakanda Resources Corp.

December 11, 2007 16:01 ET

Kakanda Closes Otish-Tichegami and Matoush-North Uranium Property Purchase in the Otish Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2007) - Kakanda Resources Corp. (the "Company") (TSX VENTURE:KRC) is pleased to announce that it has closed the acquisition of two separate claim blocks totaling 315 mineral claims in the Otish Basin of Quebec (approximately 16,600 hectares) as reported in Stockwatch news December 4, 2007.

Under the terms of the agreement the Company has paid $125,000 and issued 500,000 Shares to the property vendors (the "Vendors"). The Vendors will retain a 2% Net Smelter Returns royalty. The Company will have the option, at any time to reduce the NSR to 1% for a cash payment of $1,000,000.

Following completion of this transaction and the recent Gateau and Hinterland purchases (see Stockwatch news dated July 4, 2007, Nov. 5, 2007, and Nov 13, 2007), the Company now holds 100% interest in 802 claims (approximately 42,600 hectares) in the Otish Basin area of Quebec.

The first claim block called the Otish-Tichegami Property is comprised of 256 mineral claims (approximately 13,500 hectares). The property is located due north of Strateco Resources Inc.'s Matoush uranium deposit, and roughly 5km directly south of the Eastmain Gold deposit. The property's eastern and southeastern margin runs in contact with the Melkior-Santoy Otish West uranium joint venture.

The second claim block called the Matoush-North Property is comprised of 59 mineral claims (approximately 3,100 hectares). The property is located roughly 10km to the northeast of Strateco Resources Inc.'s Matoush uranium deposit and is abutted on its entire western margin by the southernmost portion of Consolidated Pacific Bay Minerals' "Rabbit Ears" property.

The Otish Basin is being actively explored most notably at the Matoush Project where Strateco Resources Inc. has recently announced drill hole intersections of up to 2.1 per cent U3O8 over 12.4 metres (Strateco Press Release: December 22, 2006).

The Company plans to explore the claims for unconformity-type uranium deposits both above and below the basin unconformity surface as well as for Matoush fault-type uranium deposits well above the basin rim. The first phase of exploration will include a high-definition magnetic and radiometric airborne survey over the entire property in order to generate prospecting targets.

On Behalf of the Board,

Kakanda Resources Corp.

Steve Smith, President

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above and in the corporation's periodic filings with the British Columbia Securities Commission and the U.S. Securities Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The corporation does not intend to update this information and disclaims any legal liability to the contrary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Kakanda Resources Corp.
    Steve Smith
    (604) 642-0115
    (604) 642-0116 (FAX)
    Email: steve.smith@telus.net