Bayfield Ventures Corp. ("Bayfield") and Skyharbour Resources Ltd. ("Skyharbour") report today that they have amended the terms of their Option Agreement dated May 14, 2002 ("Option Agreement"). Skyharbour had been granted an option by Bayfield to acquire a 51% interest in a total of 6 mineral claim units located in Baird Township, Red Lake District, Kenora Mining Division, Ontario (the "Baird Claims").
Pursuant to the terms of the Option Agreement Skyharbour was to have completed a $250,000 work program on the Baird Claims by December 31, 2002. This requirement was subsequently extended to June 30, 2003. As of the date of this news release, Skyharbour has completed $190,000 of the required $250,000 work commitment. The parties have agreed to further amend the Option Agreement to the extent that Skyharbour will satisfy the balance of the work commitment due to be made on the Baird Claims by issuing to Bayfield a total of 335,000 shares at a deemed price of $0.18 per share, being the ten day trading average of the Skyharbour shares as traded on the TSX Venture Exchange. Following the issuance of the 335,000 shares, Skyharbour will be vested with a 50% interest and Bayfield a 50% interest in the Baird Claims. The amending agreement is subject to the approval of the TSX Venture Exchange.
The parties also reported that they were in negotiations with an unrelated third party which wished to acquire a controlling interest in the Baird Claims. The proposed terms contemplate a small cash payment and a significant work obligation on the property over a two year period. The proposed transaction is subject to concluding a definitive, binding agreement and would be subject to TSX Venture Exchange approval.
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