Bayswater to absorb Northern Canadian Uranium (November 05, 2007)

Vancouver — Bayswater Uranium (BAY-V, BYSWF-O) has inked a deal to take over Northern Canadian Uranium (NCA-V, NCADF-O) for its property portfolio in Wyoming’s Powder River basin, northern Saskatchewan’s Athabasca basin and Mali, plus its application on a dozen uranium concessions in Niger.

Bayswater is offering 0.65 of a share for each share of Northern Canadian Uranium, valuing the deal at about $21.5 million based on Bayswater’s $1.08 per share closing price prior to the announcement and Northern Canadian’s 30.6 million fully diluted share position.

In the Powder River basin, Northern Canadian has several sandstone-hosted uranium projects with in-situ leach potential close to Bayswater’s claims. A combined historic resource of almost 600,000 contained pounds of U3O8 equivalent has been calculated on several areas of the combined landholdings.

Northern Canadian’s Athabasca basin footprint consists of three projects including its 90%-owned Collins Bay Extension property on the eastern rim. It covers the northeast extension of the Collins Bay fault system associated with Cameco’s (CCO-T, CCJ-N) Eagle Point, Collins Bay and Rabbit Lake uranium deposits.

The 1,000-sq.-km Samit concession in Mali is in the Tilemsi basin, which has similar geology to the Tim Mersoi basin in neighbouring Niger. Previous work by a Japanese energy company reviewed about 440,000 contained pounds U3O8 in material averaging 0.085% U3O8 based on over 400 drill holes.

Northern Canadian also holds the Carol R Mine uranium project in southwestern Nevada, which saw open-pit mining in the mid-1950s.

Once the deal is completed, Bayswater will focus on expanding resources within the combined land package in Wyoming.

“Northern Canadian’s key U.S. properties represent strategic assets for the development of Bayswater’s U.S. projects and should significantly enhance the economics of our proposed mining operations,” said Bayswater president George Leary in a statement announcing the friendly takeover.

The merger is subject to regulatory approval and the support of Northern Canadian shareholders.

Bayswater, which touts itself as a “super junior” uranium company, acquired Kilgore Minerals earlier this year through a similar deal that helped build its holdings in key U.S. uranium districts.

Bayswater also has properties in Labrador’s Central Mineral Belt and in Nunavut’s Thelon basin.

Bayswater recently resumed exploration activities on its Labrador CMB project after suspending operations for about two weeks due to a helicopter accident in early October that claimed the pilot’s life.