Bayswater Completes Merger to Acquire U.S. Uranium Assets
Acquisition Provides Balanced Portfolio of Exploration and Advanced Uranium Properties
Vancouver, BC, July 25, 2007 ─ Bayswater Uranium Corporation (TSX-V: BAY) reports the Company’s merger with Kilgore Minerals Ltd. has been completed to create a well-balanced, small-cap, uranium exploration and development company with combined working capital of $42 million. Bayswater has a highly attractive property portfolio consisting of large exploration land holdings in Canada’s most important uranium regions. In addition, the Company now has, upon completing the merger, advanced uranium properties with historical uranium resources having near term production potential in the United States.
Acquired historical resources in Montana are summarized as follows as stated in a NI 43-101 technical report1 by James R. Guilinger of World Industrial Minerals, LLC dated June 6, 2007:Montana Historical Resource Estimate
Property |
Resource Class |
Pounds eU3O8 |
Average Grade % eU3O82 |
Acadia Claim Group including Cochrane Area |
Historical |
3,700,000 |
0.125% |
Ella Claim Group |
Inferred |
1,960,000 |
0.300% |
Mindy Claim Group |
Historical |
1,400,000 |
0.156% |
The technical report states that a tonnage factor of 0.42m3 (15.5 ft3) per short ton was used in addition to a minimum grade/thickness cutoff (“GT”) of 0.3 (1.8 m or 6 ft of 0.05%), and that the average thickness was 2.13 m (7 ft) at a cutoff thickness of 1.8 m (6 ft) regarding the above stated historical resources.
In addition, the Company has also acquired the following historical resources in Nevada and California:Nevada and California Historical Resource Estimate3
| Property | Resource Class |
Pounds eU3O8 |
Average Grade % eU3O8 |
| Mountain West, Nevada | Historical |
927,400 98,000 |
0.153 0.140 |
| Juniper, California | Historical |
4,018,000 |
0.193 |
The above historical uranium resources have considerable potential for expansion by further step-out drilling—since previous exploration was discontinued in the 1980’s as a result of the depressed uranium price. Of the above resource properties, the Company will initially focus on the Mountain West property in Nevada and the Acadia, Ella, and Mindy properties in Montana with respect to confirming and expanding resources, metallurgical and hydrological testing, bringing historical resources into NI 43-101 compliance and in developing the properties to definitive feasibility and licensing to production. A detailed review of the regulatory requirements for permitting and licensing in both Nevada and Montana has indicated that no unusual impediments to exploration, development and production are anticipated for these projects.
The merger with Kilgore also provided the Company with strategic land packages elsewhere in Montana as well as in Wyoming, with known uranium mineralization and defined targets for drill testing and potential resource delineation.
George Leary, President and CEO of Bayswater stated, “Bayswater combines the high discovery potential of its Canadian exploration properties with the addition of several advanced-stage properties in the United States with upside and near-term production potential, providing shareholders with a balanced and diversified exposure to the fast-growing uranium market. Although no change to the Company’s management has occurred as a result of the Kilgore merger, we are all very pleased that Norm Burmeister, former CEO and president of Kilgore, has agreed to continue as a special advisor to the Company on its US operations.”
In Canada, Bayswater is the largest landholder in the Central Mineral Belt, Labrador, and the Thelon Basin, Nunavut/Northwest Territories. The Company also has one of the largest land positions in the Athabasca Basin, the world richest uranium-producing region. In 2007 and early 2008, approximately $20 million has been budgeted for exploration in Canada with the goal of bringing all properties to the drilling stage. Of this budget, over $6.0 million is allocated for drill testing of uranium targets. Drilling is already underway in the Central Mineral Belt, with two drill rigs testing up to ten uranium targets.
In the United States, Bayswater is now one of the largest uranium property holders with 22 projects. The Company is planning programs over the next year consisting of confirmation and step-out drilling along with metallurgical testing on its Nevada and Montana properties—both of which properties are to be fast tracked to production pursuant to the requisite environmental and social impact regulatory process. The regulatory process in regards to base line studies, permitting and licensing has been initiated on the Nevada project, and is planned to be initiated shortly on the Montana project. Also, surface exploration and drilling is planned for other uranium properties in Wyoming and Montana. The Company has budgeted approximately $10.0 million for these projects over the next year.Mr. Leary stated: “As the only company in the world with landholdings comprising over 7.1 million acres (nearly 29,000 sq km) in Canada’s most important uranium exploration and development regions, Bayswater is in an excellent position for discovery of new resources. This strong exploration portfolio is now balanced with hard assets represented by our US properties that we are moving towards production to realize significant cash flow.”
Bayswater has evolved, through its strategy to become a major international uranium company, from a Canadian focused uranium explorer to an international exploration and development company. This strategy has been strengthened by the rapidly growing nuclear energy market, as countries turn increasingly to nuclear power, without carbon dioxide emissions typical of fossil fuels, to meet ever-growing energy needs.
To capitalize on the strong growth of the nuclear industry and to continue to add shareholder value, Bayswater is pursuing additional merger and acquisition opportunities that complement and/or add to the Company’s existing assets and business model. Furthermore, Bayswater intends to file a Form 20-F registration statement with the SEC to become a reporting issuer in the United States. Also, the Company is considering plans to subsequently list its shares on a US stock exchange in order to increase the Company’s attractiveness to retail and institutional investors worldwide.
1The technical report contains World Industrial Minerals’s evaluation of Kilgore’s properties located in the Powder River Basin in Crook County, Wyoming and extending into Carter County, Montana based upon its assessment of the available historical data concerning the properties. As a qualified person has not done sufficient work to classify the historical estimates relating to the Acadia Claim Group and the Mindy Claim Group as current mineral resources, the company is not treating the historical estimates relating to those properties as current mineral resources as defined in NI 43-101, and those historical estimates should not be relied upon. The documented work was undertaken by companies including Kerr McGee Corporation, Amoco Minerals, Exxon Minerals, American Nuclear, Uranium Resources Inc. and Homestake Mining Co.
2The denotation “eU3O8*” means a U3O8 assay as determined by the extrapolation of radioactivity in the sample to the actual uranium content. The actual uranium content (usually determined by chemical assay) can be higher or lower than the “e” uranium value if the deposit is out of equilibrium. This is often the case with relatively young mineralization such as the mineralization at the Mountain West property. Preliminary equilibrium work by Pathfinder, an affiliate of Areva, on the Mountain West property suggested that the actual, or chemical, uranium values are 30% higher than the values as determined by the probe, or “e” values.3Historical resources as stated above are non-compliant with National Instrument 43-101 standards, have not been verified by the company’s Qualified Person, are provided for information purposes only and, as such, should not be relied upon. For properties in Nevada and California, the historical resources are based on undated internal memoranda of Pathfinder Mines (owned by Cogema) and are referred to by them as “Indicated and Inferred” based on drilling; however, the definitions used by Pathfinder are indeterminate and differ from resource classifications pursuant to NI 43-101.
About Bayswater Uranium Corporation – The Super Junior™ Uranium Company
Bayswater Uranium Corp. is a rapidly-growing international uranium exploration and development company. As the only uranium company to have major landholdings in each of Canada's most important producing and exploration regions – the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin – Bayswater is a leader in uranium exploration in Canada, the world’s largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior™ Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor.On behalf of the Board of:
BAYSWATER URANIUM CORPORATION
| George M. Leary |
| President and CEO |
For further information contact:
| John Gomez Manager, Investor Relations |
| Telephone: (604) 687-2153 |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
