SOURCE: Bayswater Uranium Corporation

June 10, 2008 05:30 ET

Bayswater Joint Ventures Gold Properties

VANCOUVER, BC--(Marketwire - June 10, 2008) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) has entered into an option/joint venture agreement with Otis Capital Corp. ("Otis") whereby Otis can earn up to a 75% interest in Bayswater's Kilgore Gold Project, Clark County, Idaho, and two additional gold properties, Hai and Gold Bug located in Lemhi Counties, Idaho, USA (the "Properties). The Kilgore land position is covered by 150 federal lode mining claims, HAI is covered by 7 claims, and Gold Bug is covered by 9 claims.

The Kilgore Property comprises a 5 square mile, volcanic-hosted disseminated epithermal hot spring gold system situated on the northern margin of the eastern Snake River Plain. Mineralization is of Pliocene age and is hosted within Miocene age lithic and crystal tuff on the margin of a caldera setting. Mineralization style and setting, host rock type and thickness, and overall size of the mineralizing system are analogous to those characterizing the Round Mountain, Nevada and McDonald Meadows, Montana volcanic-hosted disseminated gold deposits.

Between 1983 and 2006, a total of 139,255 feet (42,445 metres) of drilling in 213 diamond and reverse circulation holes, extensive surface work, and metallurgical studies were completed on the Kilgore property by Placer Dome US, Pegasus Gold, Echo Bay Mines, Latitude Minerals and Kilgore Minerals Ltd. In 2002, Kilgore Minerals Ltd. (now Bayswater Uranium Corp.) acquired the Properties and completed limited drilling on the Kilgore property. In October 2002, G. H. Rayner & Associates and Bruce H. Van Brunt completed a NI 43-101 resource estimate for Kilgore Minerals on the Kilgore deposit based on 197 diamond and reverse circulation drill holes totaling 126,417 feet (38,513 metres) of drilling carried out by Placer Dome and Echo Bay Mines. This estimate comprises 218,000 ounces of gold in 7.043MM tons of material at an average grade of 0.031 opt Au (0.010 opt Au cutoff) in the indicated category, and 269,000 ounces of gold in 9.661MM tons of material at an average grade of 0.028 opt Au (0.010 opt Au cutoff) in the inferred category.

The Hai and Gold Bug properties cover early stage gold targets that require exploration to determine if there is significant gold mineralization on the claims. Bayswater currently owns a 100% interest in the Kilgore, Hai and Gold Bug properties.

Otis can earn-in an initial 50% joint venture interest in the Properties as follows:

i. Payment of US$100,000 in cash and the issuance of 500,000 common shares upon the TSX Venture Exchange acceptance of this transaction;

ii. Payment of US$100,000 in cash and the issuance of 400,000 common shares and incurring US$250,000 in exploration expenditures in Year One;

iii. Issuance of 400,000 common shares and incurring US$350,000 in exploration expenditures in Year Two;

iv. Issuance of 400,000 common shares and incurring US$500,000 in exploration expenditures in Year Three;

v. Issuance of 400,000 common shares and incurring US$900,000 in exploration expenditures in Year Four; and

vi. Issuance of 400,000 common shares and incurring US$1,000,000 in exploration expenditures in Year Five.

Otis can increase its interest to 75% by issuing an additional 1,000,000 common shares and by completing an independent pre-feasibility study on the Kilgore Gold Project (one of the three projects being joint-ventured). In the event Otis does not exercise its right to earn the additional 25% interest, for a total of 75%, Bayswater then may elect to earn back a 10% interest, for a total interest of 60%, by expending $600,000 within the year following its election to exercise.

A 2.0% net smelter royalty ("NSR") will be paid to Bayswater on production of gold from the Property. At any time, Otis will have right to purchase each one-fourth of the NSR for the sum of $500,000, up to a maximum of three-fourths (3/4), following which Bayswater would hold a 0.5% NSR.

Completion of the transaction is subject to TSX Venture Exchange acceptance and the approval of Otis's Qualifying Transaction announced on April 22, 2008. There can be no assurance that the transaction will be completed as proposed or at all.

Victor A. Tanaka, P. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.

About Bayswater Uranium Corporation - The Super Junior™ Uranium Company

Bayswater Uranium Corporation 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 feasibility and 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. To capitalize on the strong growth of the nuclear industry and to continue to add shareholder value, Bayswater plans to focus on the development of its resource properties and to evaluate early stage projects for further discoveries. Other acquisition opportunities will continue to be assessed all with a corporate vision of building a major international uranium company. Bayswater is listed on the TSX Venture Exchange under the symbol "BAY." The Company's website is www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary
President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

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