Canadian uranium explorer Skyharbour Resources (TSX-V:SYH) is witnessing increased interest in its portfolio of projects in the Athabasca Basin of Saskatchewan.
CEO Jordan Trimble tells Mining.com.au the company, which has a market capitalisation of around C$57.2 million ($63.8 million), is in active discussions with several groups regarding new potential joint ventures and option agreements for some of its remaining 100%-owned projects.
“With the uranium market gaining momentum, we expect this interest to continue growing, and we’re well-equipped to structure deals that are accretive for our shareholders and beneficial for our partners,” he says.
“With over 20 100%-owned projects, we actively pursue opportunities to option, joint venture, or sell assets to the right partners.”
Skyharbour utilises the prospect generator model – which is a favoured model used widely in Canada that provides juniors leverage to exploration success with the right partner and deal structure.
“Our prospect generator model is designed to unlock value from these secondary projects while maintaining our focus on exploration at our core assets,” Trimble explains.
Skyharbour already has nine partner companies advancing 13 of its secondary projects while it focuses on its flagship Moore Lake and Russell Lake uranium projects.
These partnerships open up potentially over $70 million in combined project consideration consisting of exploration funding, cash and share payments from partners.
Among the notable names on the company’s register are Denison Mines (TSX:DML), Rio Tinto (ASX:RIO), Sprott Capital Partners, Tribeca Investment Partners, OTP Fund Management and Jeff Phillips.
Denison Mines is Skyharbour’s largest corporate shareholder with roughly 7% ownership and Denison’s CEO, Dave Cates, sits on the company’s board. Orano Canada, meanwhile, is a joint venture partner at Skyharbour’s Preston Project and Rio Tinto is a joint venture partner at Russell Lake and a substantial shareholder.
More than 30 countries have signed a declaration to triple nuclear energy capacity by 2050, with 14 of the largest global financial institutions supporting it.
Global demand for electricity is forecast to grow by about 50% by 2024 with data centres and electric vehicles adding to the increased need.
Uranium demand is expected to rise at a compound annual growth rate of 3.6% through 2040 as new reactors are built and existing nuclear facilities are expanded.
Demand this year is anticipated to reach 190-195 million pounds, with primary mine supply only capable of meeting 155 million pounds of that demand. The supply gap is only expected to widen, with the shortfall forecast to reach 375 million pounds through 2035.
There are currently 439 operating reactors globally, 68 under construction and over 400 either ordered or planned.
“We are seeing a noticeable uptick in interest, which tends to happen when uranium prices strengthen,” Trimble tells this news service.
“A rising uranium price typically brings renewed attention to high-quality jurisdictions like the Athabasca Basin, and companies start looking more actively for projects to acquire or earn into.”
Trimble says the Athabasca Basin has seen a notable uptick in mergers and acquisitions (M&A) and strategic investments recently, underscoring its strategic importance in the global uranium sector.
“These recent transactions reflect a broader trend of consolidation and strategic positioning within the Athabasca Basin, driven by the global need for secure and sustainable uranium supply especially in Western jurisdictions,” he says.
The Athabasca Basin is one of the world’s richest sources of high-grade uranium, accounting for about 20% of global supply.
The basin spans 100,000km2 and hosts major deposits including Cameco’s (TSX:CCO) Cigar Lake and McArthur River mines.
Write to Angela East at Mining.com.au
Images: Skyharbour Resources
