Kakanda signs Otish deal

Shares in Kakanda Resources (KRC-V, KRCFF-O) rose 50% in one day on the company’s recent announcement of a change in focus to four new Otish basin uranium properties in Quebec.

The share price increased to 30 apiece on a trading volume of more than 1 million.

Kakanda has signed an arm’s-length deal with a private group of seven people known as Ontco, for 334 mineral claims on more than 170 sq. km.

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

Under the agreement, 14 million of Kakanda’s 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. Each warrant will allow purchasers to buy a Kakanda share for 40 over a 2-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 about 45 km west of the main Otish basin.

Gateau 2 is located along the southeastern border of the Paskwati basin, adjacent to Pacific Bay’s property.

Gateau 3 is near the centre of the Otish basin on the southern contact of Cameco’s (CCO-T, CCJ-N) Otish claims.

And the Gateau 4 property is about 9 km east of Strateco Resources’ (RSC-T, SRSIF-O) Matoush uranium property.

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

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

Gillis says Ontco approached Kakanda about the deal.

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 Kakanda’s focus will likely now be the new Gateau properties.