Bayswater to acquire Northern Canadian
Canadian junior uranium company Bayswater Uranium has agreed to acquire Northern Canadian Uranium in a deal valued at some C$20.4 million ($21.1 million).
Under the agreement, Bayswater will acquire all the outstanding shares of Northern Canadian in exchange for shares of Bayswater on the basis of 0.65 Bayswater shares for each Northern Canadian share. Northern Canadian's shares were last traded for C$0.39 ($0.40) on the Toronto Stock Exchange, while Bayswater's were worth C$1.09 ($1.13). Under the deal, Northern Canadian shareholders will end up holding some 13% of Bayswater.
Northern Canadian owns a portfolio of uranium properties in 13 project areas, some with historical resources, in Canada, the USA and in Mali, and has made application for 12 uranium concessions in Niger. The company has six uranium projects in the Powder River Basin of Wyoming and three prospective uranium projects in Canada's Athabasca Basin. It also has three uranium projects in the Great Basin of Nevada, three projects in South Dakota and two uranium concessions in Mali.
Bayswater is the only uranium company to have landholdings in each of Canada's most important producing and exploration regions - the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin. The company also owns several uranium properties in the US states of Wyoming, Montana, Nevada and California.
"Northern Canadian's key US properties represent strategic assets for the development of Bayswater's United States projects and should significantly enhance the economics of our proposed mining operations," said George Leary, president of Bayswater.
The agreement is subject to completion of satisfactory due diligence, a definitive Arrangement Agreement, Northern Canadian shareholder approval and regulatory approvals.
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