Kakanda Resources Corp.
TSX VENTURE : KRC

Kakanda Resources Corp.

December 04, 2007 08:00 ET

Kakanda Purchases Otish-Tichegami and Matoush-North Uranium Properties in the Otish Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2007) - Kakanda Resources Corp. (the "Company") (TSX VENTURE:KRC) is pleased to announce that it has signed a definitive agreement to purchase 315 mineral claims (approximately 16,600 hectares) in the Otish Basin Area of Quebec.

Under the terms of the agreement the Company has agreed to pay $125,000 and issue 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.

The Otish-Tichegami Property is comprised of 256 claim blocks (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 Matoush-North Property is comprised of 59 claim blocks (approximately 3,100 hectares). It 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 property is underlain primarily by sedimentary rocks of the Indicator Formation and it straddles the unconformity contact with the underlying granitic complex. It offers potential for classic unconformity-type uranium mineralization both below and above the unconformity surface.

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

This transaction is subject to due diligence and the approval of the TSX Venture Exchange.

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
    President
    (604) 642-0115
    (604) 642-0116 (FAX)
    Email: steve.smith@telus.net