SOURCE: Bayswater Uranium Corporation

January 23, 2007 08:15 ET

Bayswater Announces Brokered Private Placement to Raise up to $20 Million

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

VANCOUVER, BC -- (MARKET WIRE) -- January 23, 2007 -- Bayswater Uranium Corporation (TSX-V: BAY) (the "Company") is pleased to announce it has engaged Pacific International Securities Inc. as agent (the "Agent") for a brokered private placement on a commercially reasonable efforts basis, of up to 3,450,000 units of the Company (the "Units") at a price of $1.45 per Unit and up to 9,100,000 flow-though units (the "FT Units") at a price of $1.65 per FT Unit to raise gross proceeds of up to $20,017,500 (the "Offering").

Each Unit shall consist of one common share and one half of one transferable common share purchase warrant (each whole such purchase warrant, a "Warrant"). Each FT Unit shall consist of one flow-through common share and one half of one transferable Warrant. Each Warrant will be exercisable into one additional common share at an exercise price of $1.85 per common share for a period of 18 months from closing.

The Company has also granted to the Agent an option to cover over allotments which will allow the Agent to offer up to 862,500 additional Units and up to 2,275,000 additional FT Units (the "Over-allotment Option").

The Agent will receive a cash commission of 7.0% of the gross proceeds of the Offering, including any Units and FT Units issued or sold pursuant to the exercise of the Over-Allotment Option, and the Agent may elect to receive some or all of this commission in Units. The Agent will also receive compensation options (the "Compensation Options") equal to 10% of the number of Units and FT Units placed under the Offering, including any Units and FT Units issued or sold pursuant to the exercise of the Over-Allotment Option. Each Compensation Option is exercisable into one common share at an exercise price of $1.70 for a period of 18 months from closing.

Completion of the Offering is subject to the receipt of all required regulatory approvals. Net proceeds of the Offering will be used to fund exploration on the Company's Canadian uranium projects including the Central Mineral Belt-Labrador, Athabasca Basin-Saskatchewan, Thelon Basin-Northwest Territories and Nunavut and the Hermitage Belt-Southern Newfoundland; and for a uranium exploration project in Niger, West Africa once the concessions are granted to the Company and for general working capital purposes.

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           

Warning: The Company relies upon litigation protection for "forward-looking" statements.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Contact Information

  • For further information contact:

    John Gomez
    Manager, Investor Relations
    Telephone: (604) 687-2153