Skyharbour Resources (SYH.V), a Canadian-based uranium exploration junior with a highly prospective uranium asset portfolio in the storied Athabasca Basin, announced today that it had completed the 100% acquisition of the South Dufferin Uranium Project from Denison Mines through a share and cash deal.
This isn’t the first asset Skyharbour has purchased from Denison. Skyharbour’s co-core Moore Lake Uranium Project located in the southeastern corner of the Basin hosts a high grade uranium mineralization with drill intercepts of shallow uranium including 20.8% U3O8 over 1.5 metres at 265 metres.
The South Dufferin Uranium Project is located on the southern edge of the basin west of Skyharbour’s other core Russell Lake Uranium Project. South Dufferin totals 12,282 hectares in nine claims.
The property covers the southern extension of the Virgin River Shear Zone, which hosts known high-grade uranium mineralization at Cameco’s Dufferin Lake zone approximately 13 kilometres to the north.
South Dufferin has the potential for basement-hosted uranium mineralization associated with the Dufferin Lake fault and parallel faults within the Virgin Lake Shear Zone.
The project is drill ready with numerous prospective targets which warrant follow up exploration work.
This acquisition ups Skyharbour’s total land holdings to a whopping 504,356 hectares across 24 properties, making it the largest uranium exploration land holding in the region.
Jordan Trimble, president, CEO and director of Skyharbour confirmed, “I think by mineral tenure acreage, we’re top five largest landholders in northern Saskatchewan.”
So with 24 properties, one might think Skyharbour has spread itself incredibly thin and will only dilute shares covering basic uranium exploration commitments at its multitude of projects. Skyharbour circumvents this fate through a cunning combination of exploration, joint ventures and project generation.
South Dufferin is part of the company’s project generation segment as the company seeks out strategic partnerships to advance the asset. This isn’t Skyharbour’s first trip down the partnership river as the company already has JV agreements with eight uranium explorers including such recognizable names as Orano Canada which developed the Cluff Lake Mine in the 80’s and currently employs 450 people in Saskatchewan.
Skyharbour now has option agreements that total over $37.0 million CAD in exploration expenditures. These agreements have resulted in over $28.0 million in stock being issued to the company as well as receiving over $19 million in cash payments.
“These companies are, most of them are either drilling, exploring or planning to be working at these projects. It generates a lot of additional news flow for the company and for our investors. It also offers additional discovery potential and exploration upside potential.” – Jordan Trimble
Most recently, Skyharbour inked an option agreement with North Shore Energy Metals which gives North Shore an earn-in option to acquire an initial 80% interest and up to 100% interest in the South Falcon Property.
South Falcon is comprised of 11 mineral claims covering approximately 42,908 hectares. The option agreement calls for North Shore to fulfill a combined cash, share issuance and exploration work commitment of $5.3 million over a three-year period, with the option to purchase the remaining 20% for an additional $10.0 million in cash and shares.
But back to South Dufferin. The property has no underlying royalties except for a 2% NSR on one of the claims. Skyharbour also owns a 922 hectare claim adjacent to South Dufferin which brings that particular land package up to 13,204 hectares over ten claims.
Through this hybrid business model, Skyharbour is uniquely positioned to advance its own core projects while painlessly adding tremendous share value through the continuing uranium exploration work by its JV partners.
Don’t take my word for it, Denison Mines holds a healthy chunk of Skyharbour while management has put a goodly amount of their own money where their collective mouth is.
Trimble affirmed the readily apparent industry interest, “Denison is a large corporate strategic shareholder of Skyharbour, like Rio Tinto. A big vote of confidence having them in the company as an equity holder here for better part of the last six and a half, seven years.”
Speaking of management, Jordan Trimble who not only has serious pedigree in the mining sector, but continues to impress uranium exploration industry peers with his deal-making acumen and business management.
Skyharbour is steadily adding to its blue sky potential.
The company currently trades at $0.40 per share for a market cap of $61.46 million.
*Full disclosure: Skyharbour Resources is an Equity Guru marketing client