Exploration Co.'s Partner Company Starts Summer 2025 Program in Canada's Athabasca Basin

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Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced partner company Mustang Energy Corp. (MEC:CSE; MECPF:OTC; 92T:FRA) has started its 2025 field exploration program at the 914W uranium project located in the Athabasca Basin region.

The program will involve surface prospecting activities, detailed rock and soil sampling, aimed at identifying zones of mineralization and alteration, Skyharbour said in a release.

"We're excited to launch our first field program of the summer at 914W," said Mustang Chief Executive Officer Nick Luksha. "The project area has encouraging geological features, and our upcoming work is designed to generate meaningful results that will guide the next phases of exploration."

Mustang Energy may acquire a 75% interest in the project by issuing common shares of CA$480,000, making cash payments of CA$275,000 to Skyharbour, and incurring CA$800,000 in expenses for exploration over a three-year period.

Results from this phase of exploration are expected to inform later exploration efforts, including geophysical surveys and drilling, Skyharbour noted.

Skyharbour is advancing its co-flagship Russell Lake and Moore Lake uranium projects, with approximately 16,000 to 18,000 metres of combined drilling planned for 2025. In addition to its core exploration activities, the company employs a prospect generator model, partnering with other companies to fund and advance a broad portfolio of projects across the Athabasca Basin. Its total ownership interest is more than 614,000 hectares across 36 projects. It has nine partner companies advancing 13 projects in its portfolio, with project considerations totaling CA$70 million, assuming that these partner companies complete their full earn-ins at their respective projects.

Analyst Sid Rajeev of Fundamental Research Corp. wrote recently that Skyharbour owns "one of the largest portfolios among uranium juniors in the Athabasca Basin."

"Given the highly vulnerable uranium supply chain, we anticipate continued consolidation within the sector," noted Rajeev, who had a Buy rating with a fair value estimate of CA$1.21 per share on the stock. "The rapidly growing demand for energy from the AI (artificial intelligence) industry is likely to accelerate the adoption of nuclear power, which should, in turn, spotlight uranium juniors in the coming months,"

Project Remains Underexplored

Mustang is actively exploring properties in the Athabasca Basin, including its flagship property, Ford Lake, which covers 7,743 hectares in the prolific eastern basin. Its Cigar Lake East and Roughrider South projects span 2,901 hectares in the Wollaston Domain, which also contains the 914W project.

Mustang has also established its footprint in the Cluff Lake region of the Athabasca Basin with the acquisition of the Yellowstone Project and further expanded its presence in the south-central region of the Athabasca Basin with Dutton.

In its release, Skyharbour noted that the 914W project has seen limited modern exploration despite being close to Highway 914 and prospective geology.

Electromagnetic (EM) and magnetic surveys and groundwork were completed in 1968-1970 and lake water and sediment sampling were done in 1976. Ground VLF-EM (very-low-frequency electromagnetic), magnetic and radiometric surveys, geological mapping, trenching, as well as sampling on the project and surrounding areas, have all been completed.

Immediately to the north of the 914W property, prospecting led to the discovery of the Scurry Rainbow zone E and the Don Lake trenches, where up to 1,288 parts per million (ppm) uranium (U) was encountered in a drill hole in a pyroxene-rich unit. Surface prospecting also revealed up to 0.64% U3O8 in a trench at Don Lake zone E.

"The project remains underexplored and prospective for unconformity-related and pegmatite-hosted uranium and REEs (rare earth elements)," Skyharbour said in the release.

Analyst: Co. Has Potential for 'Multiple' Discoveries

Technical Analyst Clive Maund wrote on March 24 on CliveMaund.com that "with big uranium companies such as Cameco Corp. (CCO:TSX; CCJ:NYSE) and Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) as neighbors, the chances of multiple significant discoveries being made (by Skyharbour and its partners like Mustang) are high."

"This being so, and with the uranium price looking set to turn up after its substantial correction of the past year back to support, this looks like a good time to buy Mustang," Maund noted.

The company's stock has been building out a "probable base pattern" since December that "approximates to a Head-and-Shoulders bottom," the analyst said. "If this interpretation is correct, then we are currently close to the Right Shoulder low which is a very good place to buy. Volume indicators have been somewhat weak but are now improving with substantial upside volume showing up late last week."

Maund continued, "With the potential for multiple significant discoveries within its wide range of sizable properties in the prolific Athabasca Basin, Mustang is viewed as a buy here for an advance out of what is believed to be a base pattern."

The Catalyst: Trump Orders Could Revitalize Industry

As the fuel for nuclear power, uranium is one of the most important elements for the energy transition. Our electricity grids are facing a serious crunch as the need for more power to drive artificial intelligence (AI) and data centers clashes with air conditioners working harder than ever before to cool our buildings as global temperatures rise.

U.S. President Donald Trump has invoked the Defense Production Act, which seeks to secure nuclear fuel resources by encouraging domestic uranium mining and enrichment, aiming to reduce dependence on imports from countries like Russia, Stockhead reported Wednesday.

"American domestic uranium production is reportedly only 2% of the U.S. reactor demand and a U.S. ban on Russian uranium imports puts a premium on U.S. domestic uranium supply," the site said.

According to a report by Mrinalika Roy for Reuters on Tuesday, industry experts said Trump's latest orders seeking to revitalize the U.S. nuclear energy industry could pull the uranium market out of its current lull and boost investor interest.

"Spot uranium prices have fallen about 30% from peaks hit in 2023 as institutional investors pulled out, spooked by recession fears and geopolitical instability," Roy wrote.

Ownership and Share Structure

Management, insiders, and close business associates own approximately 5% of Skyharbour.

According to Reuters, President and CEO Jordan Trimble owns 1.5%, and Director David Cates owns 0.65%. Institutional, corporate, and strategic investors own approximately 55% of the company.

Denison Mines owns 6.3%, Rio Tinto owns 2%, Extract Advisors LLC owns 9.6%, Alps Advisors Inc. owns 9.1%, Mirae Asset Global Investments (U.S.A) L.L.C. owns 5.68%, and Incrementum AG owns 1.05%, Reuters reported.

There are 204.46 million shares outstanding with 199.65 million free float traded shares, while the company has a market cap of CA$64.62 million and trades in a 52-week range of CA$0.28 and CA$0.51.

According to Refinitiv, about 0.13% of Mustang is owned by Insiders and Management, and the rest is retail. Top shareholders include Toby Lim with 0.13%.

It has 77.57 million shares outstanding, 67.97 free floating shares, and has a market cap of CA$17.94 million. It trades in a 52-week range of CA$0.15 and CA$0.50.