SOURCE: Bayswater Uranium Corporation

December 07, 2006 07:15 ET

Bayswater Joint Ventures Murphy Uranium Property in Newfoundland

VANCOUVER, BC -- (MARKET WIRE) -- December 7, 2006 -- Bayswater Uranium Corporation (TSX-V: BAY) reports it has joint ventured the Murphy Uranium Property in Newfoundland to Commander Resources Ltd. (TSX-V: CMD). The 50:50 joint venture enables the companies to share interests and costs in Murphy, which is strategically located in the Hermitage Uranium Belt. Bayswater and Commander are the dominant landholders in the belt, with interests in approximately 900,000 acres.

Under the terms of the joint venture (JV) agreement, Commander acquired a 50% interest in the 90% interest Bayswater is earning in the Murphy Property by assuming 50% of Bayswater's option agreement obligations. Commander's first year obligations include a cash payment of $12,500, issuance of 80,000 shares to Bayswater, and funding $50,000 in exploration expenditures. Future optional obligations by Commander include additional cash payments of $175,000, issuing to Bayswater shares in the company equal in value to 450,000 shares of Bayswater over three years, and contributing $450,000 in exploration expenditures over four years.

Assuming the Murphy option fully vests and Commander remains an active JV participant throughout the term of the option, the resulting interests in Murphy will be 45% Bayswater, 45% Commander, and 10% as to the owners. The underlying owner's 10% property interest will be carried to commercial production; prior to production, the interest may be converted to a 3% net smelter return royalty (NSR) on production. Bayswater may reduce the NSR to 2% by paying the owner $2 million, of which $1 million would be payable by Commander.

Located in the Hermitage Uranium Belt of southern Newfoundland, the 3,212 acre Murphy Property is situated a few kilometres East and along strike from Commander's White Bear River area (HE2, Doucette, and DT1 prospects) where Commander has reported assays from rock chip sampling ranging from 0.27% to 3.1% U3O8. Commander recently commenced a 3,000 metre drilling program on its nearby Hermitage and Strickland properties; furthermore, drilling of the HE2, Doucette, and DT1 prospects will be undertaken in early 2007.

The Murphy Property joint venture agreement is subject to regulatory approval.

About Bayswater Uranium Corporation -- The Super Junior Uranium Company™

As the only uranium explorer 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 Uranium Corp. is well positioned to be a market leader in uranium exploration. Bayswater combines the experience of its technical and managerial teams with a large, highly prospective and diverse property base. 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. For further information visit www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary
President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • For further information contact:
    John Gomez
    Manager, Investor Relations
    Telephone: (604) 687-2153