Skyharbour Resources Ltd. (SYH:TSX.V; SA:NYSE.MKT) has staked six new prospective uranium exploration properties within and near the Athabasca Basin of northern Saskatchewan. The six properties comprise 147,510 hectares (364,505 acres) in the basin, which contains the world’s highest-grade uranium deposits.
The company also recently completed a small private placement financing for total gross proceeds of CA$500,000 bringing the treasury of the company to over CA$10 million in cash and stock. An independent director provided the lead order for the financing, illustrating the strong insider support for Skyharbour.
Skyharbour intends to use the financing’s proceeds for its exploration and upcoming drilling programs.
With major nations committed to reducing carbon emissions as global electricity usage continues to climb, Skyharbour President and Chief Executive Officer Jordan Trimble believes more nuclear-based generating capacity will be seen as the way to meet demand. That, he says, should drive uranium prices, and the value of exploration companies like Skyharbour, higher.
“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference,” Trimble said. “But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”
“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference. But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”
—Skyharbour President and Chief Executive Officer Jordan Trimble
At Skyharbour, he says, the emphasis is on discovering uranium at its exploration projects. Secondarily, the company acts as a project generator and land incubator enabling outside companies to earn into the secondary projects through cash and stock payments as well as funding the advancement of the projects. Management and ownership see acquisition of Skyharbour by a large mining company to be the company’s end-goal. Trimble says the trigger for such an event would be a combination of several factors.
“Finding rich deposits of high-grade U3O8 is key, along with higher uranium prices and greater demand from utilities,” he said. “We have more-than-adequate capital to get us to that point as well as a management team whose mix of capital-market and geological expertise is suited to lead us there.”
Based in Vancouver, British Columbia, Skyharbour Resources operates several uranium-drilling programs individually, or participates jointly, on over 385,934 hectares (953,663 acres) in northern Saskatchewan’s uranium-rich Athabasca Basin. It is one of the largest project portfolios in the region.
Its single-largest effort is the Moore Uranium Project, which it acquired from Denison Mines, a large strategic shareholder of the company. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization. It is located in the Maverick Zone, 15 kilometers east of Denison's Wheeler River project and 39 kilometers south of Cameco's McArthur River uranium mine. Moore has returned drill results of up to 6.0% triuranium octoxide (U3O8) over 5.9 meters including results of 20.8% U3O8 over 1.5 meters at a vertical depth of 265 meters.
In a joint venture with Orano Canada Inc., Skyharbour has a 24.5% interest in the Preston Project. It also has a 15% interest in the East Preston Project as part of a joint venture with Azincourt Energy. Preston and East Preston are large, geologically attractive properties near Fission Uranium's Triple R deposit and NexGen Energy's Arrow deposit.
In addition to having active partners at its Hook Lake Uranium Project, its Mann Lake Uranium Project and its Yurchison Project, the company also has eight other projects: South Falcon Point, Riou River, Pluto Bay, Wallee, Usam Island, Foster River, and South Dufferin.
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