Skyharbour Resources (TSX-V:SYH) has closed the definitive repurchase agreement with Denison Mines Corp (TSX:DML) to acquire an initial interest in the Russell Lake Uranium Project in Canada.
The deal, as previously reported, represents a combined total of up to C$61.5 million ($67.39 million), consisting of C$10 million in cash, C$8 million in cash and shares, and expenditures and cash payments totalling up to C$43.5 million.
Upon completion, Denison will acquire between 20-70% of interest over seven years in the claims making up Russell Lake.
CEO Jordan Trimble says the company is embarking on the next chapter of exploration at Russell with a multi-billion dollar strategic partner and large shareholder in Denison Mines.
“With up to $61.5 million in combined project consideration contemplated, we are confident that this strategic agreement will expedite the discovery process at the project,” Trimble says.
“Based on initial technical meetings and strategy sessions with Denison, we are excited about the combined exploration options for the near term.
“Russell is one of the more prospective exploration projects in the Athabasca Basin proximal to existing and developing mines including Denison’s Phoenix deposit at Wheeler River.”
Dension Mines CEO David Cates says the company is making measured investments in its project pipeline – including its development assets and high-potential exploration properties.
“This transaction achieves that objective by providing Denison with the opportunity to lead and participate in exploration efforts across four newly created joint ventures, which are designed to drive collaboration between Denison and Skyharbour’s technical teams,” Cates says.
As part of the transaction, it is anticipated that Denison Mines will make use of the current exploration camp at McGowan Lake on the project, which will continue to be operated by Skyharbour.
Russell Lake is an advanced-stage uranium exploration property, covering 73,314 hectares in the Eastern Athabasca Basin of northern Saskatchewan, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Skyharbour Resources
