Kaskattama Inc.

Kaskattama Inc.

October 22, 2010 12:40 ET

Kaskattama Announces Special Warrants Financing of a Minimum of C$10 Million and a Maximum of C$18 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2010) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Kaskattama Inc. ("Kaskattama", or the "Company") announced today the offering of Special Warrants of flow-through common shares ("Flow-Through Shares") and common share units ("Units") of the Company, for gross proceeds of a minimum of $10 million and a maximum of $18 million, with a maximum of $5,000,000 of Flow-Through Special Warrants. Each Flow-Through Special Warrant will be priced at $0.60, and each Unit Special Warrant will be priced at $0.60. Each Unit will be comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant will be transferable and exercisable to acquire one common share of the Company ("Warrant Shares") at an exercise price of $1.00 per common share, expiring 24 months following the closing date.

The Company has agreed to grant the agents an option, exercisable until the closing date, to sell up to an additional $2,700,000 of Units.

The offering will be completed by a syndicate of investment dealers led by Jennings Capital Inc., and including Stone Cap Securities Inc., Salman Partners Inc., Frazer Mackenzie Ltd., and Pope & Company Limited (collectively, the "Agents"). The offering is expected to close on or about November 15, 2010.

Kaskattama is a private company that has entered into agreements to acquire the Shoal Lake properties of Everton Resources (see press release of September 27, 2010), and also has entered into an amended Pre-Merger Agreement (see press release dated September 30, 2010) to complete an amalgamation transaction with First Metals Inc. When completed, the new company expects to have two known Shoal Lake gold deposits, Duport and Cedar Island, near Kenora Ontario and, through the amalgamation with First Metals, will also own the Magusi and Fabie Bay base metal deposits, near Noranda Quebec. Both projects are brownfields assets with mineral inventories and substantial exploration upside, as described on the Company's web site.

The proceeds from the financing will be used to complete the Shoal Lake and First Metals acquisitions, including repaying First Metals Noteholders, and to conduct extensive drill testing of several targets on the Shoal Lake and Magusi properties.

In addition, the Company is in ongoing negotiations to acquire mineral properties in the Fort Hope area, and the Ring of Fire, in northwest Ontario. Kaskattama has a unique business model in which it will actively seek First Nation participation in select projects and offer equity participation of up to 50% with its First Nations partners, where appropriate.

Forward-looking Statements

Some of the statements contained in this release are forward-looking statements, such as the anticipated use of proceeds and closing of the offering estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of the Company's business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Kaskattama Inc. does not intend to update any forward-looking statements to conform these statements to actual results.

About the Company

Kaskattama is a Canadian controlled private corporation based in Toronto, Ontario. It was incorporated under the Business Corporation Act (Ontario) on July 11, 2007. Kaskattama has a mining business development plan targeting undeveloped assets for near term resource development. It has a Canadian focus with preference given to partnerships with First Nations.

Contact Information

  • David Goldsmith
    President Designate
    647-985-6230