Bayfield Ventures Corp BYVVF

Takeover? Probably...But at what price?

[AlexPKeaton]

I think the takeover is likely to happen, but at a much lower price. The
problem here is that the resource is currently too small and they're
almost out of money. They have not stated (in their current presentations)
what their plans are going forward and how much money they will need
to achieve it. I tried getting that info from them at PDAC but their IR
guy, Riley Trimble, was more intent on promoting their uranium company
(Skyharbour Resources, who I was told, Marin Katusa, from Casey Research,
was a large shareholder.) than giving me the information I wanted.

Based on the 2 technical reports they filed earlier this year, the
recommened drilling costs will run them close to 2 million. Salaries and
G&A will run them close to 300K for this year, notwithstanding that as of
Oct.2013, they only had cash on hand of $361,412. To me, the financial
position of the company is a primary concern going forward--especially in
this environment!

I could be wrong, but my best guess is that New Gold (knowing the financial
predicament that Bayfield is in) will wait until they run out of money,
watch the share price fall, then scoop up the company at a much lower
price. Or they will wait for Bayfield to approach them with hat in hand.
And then New Gold will be able to totally dictate the terms of the deal.

Based on my interaction with them at PDAC, my sense of it is that they are
'done' with this company and are focusing more of their attention
on their new venture: Skyharbour Resources. Whom I was told had properties
strategically located next to Fission Uranium's property...Hmmm sounds
eerily familiar...I think I figured out this management team's M.O.