Kakanda signs Otish deal with group of 7

Kakanda Resources (KRC-V) shares rose 48% today as the company revealed a change in focus to four new Otish basin properties in Quebec.

The share price increased to 29.5 each on a trading volume of more than 1 million.

Kakanda has signed an arms-length deal with a private group of 7 people known as Ontco, for 334 mineral claims on more than 17,000 hectares.

Ontco is managed by Campbell Becher of Becher McMahon Capital Markets in Toronto.

Under the agreement, 14 million of Kakandas 17 million shares outstanding will be split evenly between the Ontco members.

Kakanda also plans to do a financing for $3 million $1 million at 30 per flow-through share and $2 million at 30 per unit, with each unit consisting of one common share and half a warrant. The warrants will allow purchasers to buy a Kakanda share for 40 over a two-year period.

The Gateau 1 property is on the northern margin of the Paskwati proterozoic sedimentary basin neighbouring a Consolidated Pacific Bay Minerals (CBP-V, CPBMF-O) property.

The Paskwati basin is a sub-basin that is about 45 km west of the main Otish basin.

Gateau 2 is located along the southeastern border of the Paskwati basin and also is adjacent to Pacific Bays property.

Gateau 3 is at near the centre of the Otish basin on the southern contact of Camecos (CCO-T) Otish claims.

And the Gateau 4 property is about 9 km east of Strateco Resources (RSC-T) Matoush uranium property.

Kakanda will fly an airborne radiometric and magnetometer survey immediately, followed by ground prospecting and mapping.

An initial 43-101 report will also be in the works, says investor relations representative Mike Gillis.

Gillis says Kakanda was approached by Ontco.

Kakanda has an option agreement with Hinterland Metals (HMI-V, HNLMF-O) for the combined Euro and Tonka uranium properties in the Otish basin, but Gillis says Kakandas focus will likely now be the new Gateau properties.