Kakanda Resources Corp.
TSX VENTURE : KRC

Kakanda Resources Corp.

December 18, 2007 16:17 ET

Kakanda Purchases Ridgestake Uranium Properties in the Otish Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2007) - Kakanda Resources Corp. (the "Company") (TSX VENTURE:KRC) is pleased to announce that it has signed an arms length definitive agreement to purchase 231 mineral claims (approximately 12,200 hectares) in the Otish Basin Area of Quebec.

Under the terms of the agreement Kakanda has agreed to pay $50,000 and issue 200,000 Shares to the property vendor (the "Vendor"). The Vendor will retain a 1.5% Net Smelter Returns on smeltable materials Kakanda will have the option, at any time to reduce the NSR to 1% for a cash payment of $1,000,000 to Ridgestake Resources Inc.

The 231 claim Ridgestake properties lie in the southwestern portion of the Otish Basin. The Ridgestake 1-5 properties (roughly 10,000 hectares) are located directly south of Cameco Corp's 100% owned claims located on the southern margin of the basin. Ridgestake 1-5 is abutted to the west by Dios Exploration and is roughly 18kms west southwest of the Cami River deposit controlled by UEM (jointly owned by AREVA and Cameco Corp). The Ridgestake properties are bisected by the Eastmain winter road.

Ridgestake 6 (roughly 2,200 hectares) is located approximately 15km northeast of the Cami River deposit, abutted on its northern margin by claims held in a Golden Valley Mines/Lexam Explorations Inc. joint venture located in the central portion of NTS grid 22M13.

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.

Kakanda 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