Bayswater Meets Terms of Competing Offer for Reno Creek Project

Bayswater Uranium reports that it has elected to meet the terms of competing offer which Strathmore Minerals had received with an unsolicited competing offer from a foreign based corporation for the Pine-Tree Reno Creek properties, Wyoming.

Bayswater will acquire a 100% interest in the Property in consideration of an aggregate payment of US$20 million to Strathmore of which US$ 17.5 million is payable in cash and US $2.5 million is payable through the issuance of common shares of the Company. Bayswater shall grant to Strathmore a 5% gross production royalty, which can be repurchased in whole or in part at any time for US $2 million (US $1 million cash and US $1 million in common shares) per 1% royalty reduction. A non-refundable deposit of US$250,000 in cash was previously paid to Strathmore in conjunction with the signing of the August 20, 2009 letter of intent (see news release dated August 24, 2009), which is credited against the US$20 million purchase price, and a further US$250,000 non-refundable deposit, for an aggregate deposit of US$500,000, shall be paid to Strathmore on or before January 21, 2009, and further credited against the purchase price.

Mr. George Leary, President of Bayswater says:

“The Competing Offer provides the opportunity to acquire 100% ownership of the Reno Creek Property at a cash cost of US$18.5 million upon closing of the transaction, versus a cash cost of US$26 million over two years.”  “We intend to move forward aggressively to finance the acquisition.”

For complete details of this press release, click this link.

To view  Baywater’s company profile, click here.

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