Such a Deal !
April 18, 2010
Kent Exploration (KEX, TSX-V)
Smart money continues to accumulate large blocks of Kent in advance of the upcoming spinoff when Kent’s Gnaweeda Gold Project in Western Australia is vended into Archean Star Resources…thenew company, which is being financed around 25 cents, is expected tostart trading on the TSX Venture Exchange within a week or 2 aftershareholder approval of the spinoff is granted at Kent’s AGM April 30th…Kent shareholders as of that date will receive 1 share in Archean Star for every 4 shares of Kent they own…still under some warrant pressure, Kent closed Friday at 18.5 cents, a 3.5 cent drop for the week…not only are we very bullish on the prospects for Archean Star, as explained on this site many times, but we expect Kent’s tworemaining flagship properties – the Alexander River Gold Project in NewZealand and the Flagstaff Barite Property in northeast Washington State– to propel Kent higher after the spinoff…in otherwords, we don’t accept the argument that Kent’s value will decline with Gnaweeda taken out of its property potfolio…