Skyharbour Resources Ltd. (SYH:TSX.V; SA:NYSE.MKT) announced in a news release that its partner company Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) has met all of the requirements to complete the earn-in of a 70% interest in the East Preston Uranium Project, which is located in the Western Athabasca Basin in northern Saskatchewan, Canada.
Skyharbour Resources noted that through a property option agreement entered into with it and Dixie Gold Inc. (DG:TSX.V), Azincourt Energy held an option to acquire the interest in East Preston if certain conditions were met.
Skyharbour stated that Azincourt has now completed the necessary actions and has earned its interest in the project by contributing CA$2.5 million in exploration expenditures and making payments of CA$1 million in cash payments over the last four years, as well as issuing 9.5 million of its common shares divided equally between Skyharbour and Dixie.
Skyharbour advised that after Azincourt satisfied all of the conditions necessary to acquire the earn-in interest, it established a joint venture with Skyharbour and Dixie Gold to advance and manage the East Preston Project going forward. Azincourt now owns a 70% interest in the newly formed joint venture with Skyharbour and Dixie Gold each owning 15%.
The report advised that road preparation and site access related infrastructure is now being built at the East Preston property and that drilling is anticipated to begin later this month. The cost of the project's 2021 exploration program is expected to range from $1 million to $1.4 million and includes plans for diamond drilling of 2,000-2,500 meters across 10-12 holes.
"Skyharbour continues to execute on its business model by adding value to its project base in the Athabasca Basin through focused mineral exploration at its 100% owned flagship Moore Uranium Project as well as utilizing the prospect generator model to advance its secondary projects with strategic partners. We are excited to have the opportunity to work with Azincourt as a joint-venture partner at East Preston going forward and will benefit from any upside at the Project with our minority interest," stated Jordan Trimble, president and CEO of Skyharbour Resources.
"This partnership also complements the recent option agreement we signed with Valor Resources at our North Falcon Point Uranium Project as well as our partnership with Orano Canada at our Preston Project adjacent to East Preston. Skyharbour maintains a dominant land position in the Athabasca Basin with six drill-ready uranium projects," Trimble added.
Azincourt Energy's President and CEO Alex Klenman remarked, "We are pleased to reach this important milestone...We'd like to thank our partners at Skyharbour and Dixie for being flexible along the way by adjusting some of the timeline to accommodate market conditions. We look forward to working with them as we move forward with the next phases of development at East Preston."
The company noted that the East Preston property possesses geographic characteristics that display classic targets for basement-hosted unconformity uranium deposits similar to NexGen's Arrow deposit and Cameco's Eagle Point mine. The firm noted that East Preston is situated close to the southern edge of the western Athabasca Basin, where targets are located close to the surface, but can still be found to have great depth extent when discovered.
In addition to East Preston, Skyharbour owns a large portfolio of uranium and thorium exploration projects in Canada's Athabasca Basin. The company stated that it has six drill-ready projects and "is well positioned to benefit from improving uranium market fundamentals."
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