Bayswater-Pathfinder nuptials to unite uranium juniors

Vancouver – In a move to create an expanded uranium-focused junior, Bayswater Ventures (BVE-V, BVEVF-O) and Pathfinder Resources (PHR-V, PFDFF-O) have tabled plans to merge.

The deal will consolidate uranium landholdings in Labrador’s Central Mineral Belt (CMB), the Thelon Basin in the Northwest Territories and Nunavut, Newfoundland’s Hermitage Uranium Belt, as well as in Niger and Guatemala.

The proposed new company will hold almost 4,000 sq. km in the CMB of Labrador, becoming the largest landholder in the uranium district, where a number of companies are actively exploring for iron oxide-copper-gold (IOCG) or Olympic Dam type and granite-hosted (Rossing-type) deposits. The CMB holdings will be contributed from Bayswater, which has tabled a 2006 budget of over $5 million to include airborne and ground geophysics and drilling on defined targets.

Landholdings by both Bayswater and Pathfinder in the South and North Thelon Basin will have the new company emerge as one of the larger landholders in the region with over 7,800 sq. km. The Thelon Basin, covering portions of both the Northwest and Nunavut Territories, has some similarities to the Athabasca Basin in northern Saskatchewan and has been the focus of an increasing number of explorers.

In Niger, West Africa, Bayswater recently applied for two concessions and has a purchase agreement covering another two for total holdings of about 8,000 sq. km in the country with the world’s fourth largest uranium resources after Canada, Australia and Kazakhstan. Three of the concessions are in the Arlit, Akouta region where Cogema is actively mining roll-front sandstone hosted uranium deposits.

Pathfinder will also contribute its 35,700 hectares in the Hermitage Uranium Belt in southwestern Newfoundland where stratiform sedimentary and volcanic hosted uranium mineralization has been identified.

The one-third interest held by Pathfinder in its Guatemala Uranium Venture will round out the portfolio in the new company. An initial program of prospecting and surface sampling was recently completed on the sediment-hosted uranium environment.

Terms of the merger will see each share of Bayswater exchanged for a share of the new company. Every share of Pathfinder is to be exchanged for 0.588 of a share in the new merged company. Additionally, prior to the merger, Bayswater will subscribe to a $2 million private placement in Pathfinder (3.33 million shares at 60 apiece). Subject to regulatory and shareholder approvals, the companies anticipate the merger to be completed by June.

Following being brought back to trade after the April 19th halt for the announcement, shares of Bayswater rallied 16% to close at $1.16 on volume of 350,000, while Pathfinder gained over 21% to close at 74 on 640,000 shares of volume.