Skyharbour upsizes uranium exploration financing to $9.5 million
Skyharbour Resources Ltd. (SYH-TSXV, SYHBF-OTCQX, SC1P-Frankfurt] has announced details of an upsized private placement financing that is now expected to raise $9.5 million for exploration at the company’s uranium projects in Saskatchewan. That marks an increase from the earlier $8.5 million target.
Skyharbour holds an extensive portfolio of uranium projects in Canada’s Athabasca Basin. With an interest in 29 projects spanning over 580,000 hectares, the company is in a position to benefit from the role that nuclear power and its uranium feedstock are expected to play in meeting rising demand for safe, reliable, carbon-free electricity as governments around the world strive to slow the pace of global warming.
Skyharbour said the private placement will now include the sale of up to five million hard dollar units priced at 40 cents per unit for gross proceeds of $2 million, plus any combination of the following for total gross proceeds of up to $7.5 million.
They include charity flow-through FT shares priced at 59 cents per FT share, and traditional flow-through shares priced at 46 cents per FT share.
Each unit will consist of one common share plus one-half of one common share purchase warrant, each of which will entitle the holder to purchase one share at an exercise price of 55 cents for 30 months after the offering is completed. The offering is expected to close by December 20, 2024.
On Wednesday, the shares eased 1.23% or $0.005 to 40 cents. They trade in a 52-week range of 60 cents and 31.3 cents.
Skyharbour is engaged in strategic partnerships with Denison Mines Corp. [DML-TSX, DNN-NYSE] and Orano Canada Inc., a unit of France’s largest uranium mining and nuclear fuel company.
Denison holds a 18.7% interest in Skyharbour, which is currently focused on expanding known zones of high-grade mineralization and finding new deposits on the 35,700-hectare Moore Lake project.
Moore Lake is the company’s flagship property. It is located on the southeast side of the Athabasca Basin, approximately 15 kilometres east of Denison’s Wheeler River Uranium Project and 39 kilometres south of the McArthur River mine.
Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization at the Maverick zone that returned drill results of up to 6.0% U308 (triuranium oxide) over 5.9 metres, including 20.8% U308 over 1.5 metres at a vertical depth of 265 meters.
Adjacent to the Moore project is the Russell Lake uranium project, in which Skyharbour is an operator with joint venture partner Rio Tinto Exploration Canada Inc.. The project hosts several high-grade uranium drill intercepts over a large property area with robust exploration upside potential.
In a press release on November 7, 2024, Skyharbour said it had launched a fall drilling program at the 73,294-hectare Russell Lake project. The 4,500-metre diamond drilling program in seven to nine holes is designed to follow up on a successful campaign which was completed earlier this year.