Bayswater to Sell Gold Mineral Interests in Italyadmin
Bayswater Uranium Corporation reports it has entered into an option agreement with Coltstar Ventures Inc., a capital pool company listed on the TSX Venture Exchange, whereby Coltstar may acquire all of the issued and outstanding shares of Bayswater’s wholly owned subsidiary Tuscany Minerals s.r.l., which holds certain gold mineral properties located in Italy. The acquisition of the option contemplated by the Agreement will constitute Coltstar’s “Qualifying Transaction” as such term is defined in TSX-V Policy 2.4, and upon completion, will result in the listing of Coltstar as a Tier 2 Resource Issuer.
Coltstar may exercise its option to acquire Tuscany by issuing 1,000,000 common shares of Coltstar (the “Payment Shares”) to Bayswater at a price of $0.10 per share at closing, and paying Bayswater an additional $250,000 in cash (the “Cash Consideration”), of which $50,000 is payable on closing and the balance of which is payable in $50,000 instalments every 45 days thereafter. Coltstar is also responsible for payment of all maintenance fees due in respect of Tuscany’s mineral properties from the date of the Agreement forward (or reimbursement to Bayswater of any costs paid by Bayswater from the date of the Agreement until the closing). These payments are estimated at $110,000 through December 2009.
Upon the issuance of the Payment Shares, the payment of the Cash Consideration and upon payment of Tuscany’s maintenance fees (or reimbursement to Bayswater for same), Coltstar will have exercised its option and will have acquired all of the issued and outstanding shares of Tuscany.
Coltstar shall bear all reasonable costs of the parties in respect of the Transaction.
“This deal is in line with our objective to dispose of our non-uranium assets,” states George Leary, President of Bayswater. “It also increases our security assets which is important given current economic and market conditions.”
Colstar directors Bruno Gasbarro, Jack Bal, Salvatore Giantomaso and Blair Holliday will continue to serve on Coltstar’s board following completion of the transaction, and Mr. Gasbarro and Mr. Bal will continue to serve as Coltstar’s president and its chief financial officer, respectively.
The transactions contemplated by the Agreement are conditional upon the satisfaction of a number of conditions, including the completion by Coltstar of a private placement to raise minimum proceeds of $500,000, and the approval of the TSX Venture Exchange.
Tuscany holds six gold permits comprising 5438 hectares in northern Italy covering early stage geochemical and geological targets favourable for high sulphidization gold deposits.
About Bayswater Uranium Corporation — The Super Junior(TM) Uranium Company
Bayswater Uranium Corporation is an 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. Bayswater combines a balanced portfolio of exploration and advanced projects with the uranium expertise of its technical and managerial teams. To capitalize on current market conditions and strong growth of the nuclear industry, the Company is pursuing acquisition opportunities of advance-stage uranium projects with near-term production potential. Bayswater’s vision is to build 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.