Skyharbour in $61.5 million uranium project deal with Denison Mines

Skyharbour Resources Ltd. (SYH-TSXV, SYHBF-OTCQX, SC1P-Frankfurt] has struck a definitive repurchase agreement with Denison Mines Corp. [DML-TSX, DNN-NYSE] related to the Russell Lake Uranium Project in Saskatchewan.

Under the agreement, Dension will acquire an initial project interest in Russell Lake. The parties have pledged to enter into four separate joint venture agreements at closing on various claims making up Russell. Denison is an existing large shareholder of Skyharbour and now joins the company has a strategic, active funding partner at Russell Lake.

The move comes after Skyharbour announced details of an agreement with Rio Tinto Exploration Canada Inc. (RTEC) that consolidates Skyharbour’s ownership interest in the Russell Lake project.

Prior to closing, RTEC’s interest stood at 42.3%. Under the agreement, Skyharbour is acquiring 100% of RTEC’s minority interest for $10 million cash.  The purchase price consists of a $2.0 million deposit made payable within five days of the date of execution of the purchase agreement, and a $8.0 million cash payment at the closing, which is expected to occur on December 21, 2025.

Skyharbour will grant RTEC a 0.25% net smelter return royalt on Russell Lake. The acquisition of RTEC’s interest will increase Skyharbour’s stake to 100%, subject to several other net smelter returns royalties held by third parties.

The Russell Lake Project is a large, advanced-stage exploration property covering 73,314 hectares strategically located in the Eastern Athabasca Basin of northern Saskatchewan between Cameco Corp.’s [CCO-TSX, CCJ-NYSE] Key Lake and McArthur River projects and adjoining Denison’s Wheeler River project to the west and Skyharbour’s Moore Lake Uranium project to the east.

The Highway 914 between Key Lake and McArthur River runs through the western extent of the property, greatly enhancing accessibility. A high voltage powerline is situated alongside this road.

Skyharbour’s acquisition of a majority interest in Russell Lake creates a large, nearly contiguous block of highly prospective uranium claims covering 109,019 hectares between the Russell Lake and Moore Lake projects.

Skyharbour said its strategic agreement with Denison represents a combined total consideration of $61.5 million, consisting of cash and share payments to Skyharbour totalling up to $21.5 million (including $18 million before year end) plus expenditures totalling up to $40 million for Denison to acquire between a 20% and 70% ownership interest over seven years in the claims making up Russell, with Skyharbour owning the remaining interests.

The project will be divided into four different joint ventures, including Russell Lake (RL), Getty East, Wheeler North, and the Wheeler River Inlier Claims, of which Skyharbour will retain initial ownership interests of 80%, 70%, 51% and 30% respectively. Denison can earn up to a 70% interest in the Wheeler North and GettyEast properties via option agreements.

Skyharbour shares advanced on the news, rising 11.4% or $0.04 to 39 cents on Monday. The shares trade in a 52-week range of 50 cents and 27.8 cents.