Impact: Very Positive
Skyharbour (SYH) announced it acquired an initial 51%, and up to 100% interest in Russell Lake uranium project in the Athabasca Basin from Rio Tinto (LSE:RIO, Not Rated). Russell Lake is a 73,294-ha mid-stage exploration project s strategically located on the highway and powerline in between key infrastructure such as the Key Lake mill and McArthur River mine. We believe this transaction becomes particularly interesting through shallow discovery potential of both unconformity and basement hosted uranium deposits via exploration, and down the road where we could potentially see a mineral inventory estimate or resource estimate. In our view, notwithstanding the lack of impact to our valuation as the value is offset by the purchase price, this was an excellent acquisition and improves Skyharbour’s odds of discovering further high-grade basement or unconformity uranium deposits in the Athabasca Basin.