April 28, 2023
Skyharbour Resources Ltd. (TSXV:SYH, BUY (S), C$0.85 target, David A. Talbot) announced it has acquired a 100% interest in the South Dufferin uranium project from Denison Mines (TSX:DML, Not Rated). The company will issue 6M shares, 1M warrants, and make a cash payment of C$125k. Each warrant entitles Denison to purchase one common share of Skyharbour at $0.60/sh until April 27, 2025. In a deal worth ~C$3M, the acquisition of the nine-claim South Dufferin project covers 12,282 ha and brings the company’s project count to 24 properties over 0.5M ha. South Dufferin will become part of the project generator business and strategic partners are being sought to advance the project. This is an early-stage project with the potential for basement-hosted uranium mineralization associated with the Dufferin Lake fault (>200m offset) and parallel faults within the Virgin Lake shear zone. Historical work included airborne EM, magnetic and radiometric surveys, lake water and sediment sampling, mapping, prospecting, and diamond drilling. Some historical drill holes hit clay alteration, with elevated uranium and anomalous base metals and boron. There are numerous uranium showings north of the project including Cameco’s (TSX:CCO, Not Rated) Dufferin Lake zone (1.73% U3O8 over 6.5m), located ~13km to the north; and the Centennial deposit (8.78% U3O8 over 33.9m), located ~25km to the north. We note that the project is drill-ready. Additionally, the company announced that Denison has agreed to not exercise a second buyback option to repurchase Moore Lake by paying C$0.5M and spending C$16.5M over four years. Skyharbour will now own its co-flagship Moore Lake project without any buyback encumbrance. Looking ahead, Skyharbour remains focused on its Russell Lake and Moore Lake projects, where it anticipates its largest combined drilling and exploration program over the coming year. Read more
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Skyharbour Resources Ltd. – TSXV:SYH – 3
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