Uranium Explorer Secures Massive $61.5M Partnership Breakthrough in Saskatchewan

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced it has finalized a definitive repurchase agreement with Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT), in which Denison will initially acquire a stake in Skyharbour's Russell Lake Uranium Project, and both parties will enter into four distinct joint venture agreements at closing, covering various claims within Russell, according to a November 17 release.

 The project is strategically positioned in the central part of the Eastern Athabasca Basin in northern Saskatchewan, benefiting from regional infrastructure, including an all-weather road and powerline.

"This is a transformative transaction for Skyharbour and our shareholders as it represents a major stamp of approval for Russell with up to CA$61.5 million in combined project consideration coming in," said President and Chief Executive Officer Jordan Trimble. "We are very pleased to expand upon our long-standing relationship with Denison and to partner with their team to advance one of the more prospective exploration projects in the Athabasca Basin proximal to existing and developing mines."

Highlights of the Agreement

The strategic agreement entails a combined total project consideration of up to CA$61.5 million, comprising cash or share payments to Skyharbour totaling up to CA$21.5 million (including CA$18 million before year-end) and expenditures up to CA$40 million for Denison to acquire between a 20% and 70% ownership interest over seven years in the claims comprising Russell, with Skyharbour retaining the remaining interests, according to the release.

Denison, a leading uranium mining company with a market capitalization of nearly CA$3 billion, is developing the Wheeler River Project, which shares a 55-kilometer border with Russell. Denison, already a significant corporate shareholder of Skyharbour, now joins the company as a strategic, active funding partner at Russell.

The project will be divided into four separate joint ventures: RL, Getty East, Wheeler North, and the Wheeler River Inlier Claims, with Skyharbour initially holding ownership interests of 80%, 70%, 51%, and 30%, respectively, the company said. Denison can earn up to a 70% interest in the Wheeler North and Getty East properties through option agreements.

The technical teams from Denison and Skyharbour will collaborate to advance and unlock value across the joint ventures, leveraging top-tier exploration and development expertise in the region, Skyharbour said. Denison has committed to a minimum of CA$4 million in exploration expenditures over the first two years at Wheeler North and Getty East combined and has agreed to fund its pro-rata 20% participation interest in the Russell Lake claims through 2029, until total exploration expenditures on the property reach CA$10 million.

According to the company, it will maintain its role as operator with an 80% ownership stake in the RL claims, which encompass over 53,192 hectares of the original 73,314-hectare Russell Lake Project. The company will also serve as operator during the initial earn-in phase at Getty East, with Denison solely funding the exploration to meet the earn-in option requirements.

Red Cloud Securities Head of Equity Research David Talbot, on November 17, called the development "very positive" in an updated research note, maintaining his firm's Buy rating on the stock and increasing its price target from CA$0.55 per share to CA$0.65 per share.

Skyharbour said it is set to benefit from a significant financial commitment from Denison before the end of the year, which will support its uranium exploration and corporate activities through 2026. Additionally, the company will generate revenue from its operator fee at the McGowan Lake exploration camp at the Project.

Skyharbour will continue to advance its high-grade Moore Uranium project and the RL claims at Russell, while partner companies finance exploration at some of its other projects.

Denison's success in exploring, permitting, and developing the neighboring world-class Wheeler River Project will provide considerable insight and experience as we jointly pursue success at Russell," Trimble continued. "Further, this transaction delivers on our belief that Russell should be treated as multiple different projects due to the abundance of targets and sheer scale of the land package in one of the most prolific uranium exploration corridors in the world."

David Cates, President and CEO of Denison, added: "As Denison nears receipt of final regulatory approvals for the Phoenix In-Situ Recovery mine proposed for our flagship Wheeler River property, we are also making measured investments in our project pipeline — including our next development assets and high-potential exploration properties.

Given its proximity to Wheeler River, Denison has had an interest in adding Russell to our property portfolio for much of my nearly two decades with the company. This transaction achieves that objective by providing Denison with the opportunity to lead and participate in exploration efforts across four newly created joint ventures, which are designed to drive collaboration between Denison and Skyharbour's technical teams."

Analyst: A 'Transformative' Deal

Red Cloud Securities Head of Equity Research David Talbot, on November 17, called the development "very positive" in an updated research note, maintaining his firm's Buy rating on the stock and increasing its price target from CA$0.55 per share to CA$0.65 per share.

"In our view, this is a transformative deal for SYH that should allow for more aggressive exploration at its Russell Lake properties, which border Denison's Wheeler River project, currently in its final permitting stages," Talbot wrote in the updated research note. "Irrespective of current valuation, we believe the real prize lies in increased exploration activity in the Russell Lake area, thus enhancing the chances of additional high-grade uranium discoveries."

Talbot continued, "The deal gives Russell Lake a major stamp of approval by Denison, while providing access to Denison's very deep and experienced technical team. Meanwhile, SYH gets to retain the bulk of interest in the Russell Lake claims and generate revenue through an administrative fee to be charged from Denison at its McGowan Lake exploration camp at the project."

Talbot said Red Clouds now assesses SYH's share in the Russell Lake project based on the new JV terms. Each JV's current valuation estimate is based on CA$18 million cash, weighted by hectares acquired by Denison in respective JVs.

"To this, we add the future cash and exploration expenditures to be incurred by Denison to fully complete the earn-in," Talbot wrote. "We then value Skyharbour's share based on post earn-in share. We value Moore, South Falcon, and other projects by applying US$1.50/lb in-situ multiple to our estimated mineral inventory and CA$300/hectare (was CA$400) to landholdings.

Analysts from Fundamental Research wrote on November 18 that the agreement will add value to both companies.

"Russell Lake's proximity to Denison's Wheeler River project makes it a highly strategic addition for Denison," they noted. "This partnership is a major positive for SYH: it brings a leading player on board, validates the project's potential, and allows Denison to advance exploration while SYH retains significant exposure. It also strengthens SYH's balance sheet, providing capital to advance its other projects."

"We see this transaction as a strong endorsement for the advanced-stage Russell Lake project, where Skyharbour has already identified high-grade uranium mineralization, and which remains promising for further basement-hosted uranium discoveries," Analyst Marcus Giannini of Haywood Securities wrote in an updated research note about the company on November 17.  He did not rate the stock or give it a price target.

He continued, "Additionally, the arrangement is poised to capitalize on the combined expertise of Skyharbour and Denison's technical teams, with Denison already having significant familiarity with the Russell Lake project."

The Catalyst: New Sources Needed for Critical Mineral

On November 13, Jeff Clark of The GoldAdvisor.com reported that uranium had been added to the United States Geological Survey's Critical Minerals list, alongside copper, nickel, and tungsten. Clark explained that this inclusion formalized uranium's strategic importance following earlier remarks from the White House. He emphasized that "around 95% of the uranium that fuels America's reactors comes from outside the country," highlighting the significance of domestic and allied supply chains. Clark also pointed out that the critical designation benefits producers, developers, and explorers, noting that "critical status has a habit of loosening capital by way of government funding programs, strategic partners, and offtake conversations."

In a commentary from November 6, featured in The Market Online, Nuclear Vision Ltd. CEO Derrick Dao shared insights on global nuclear energy trends. Dao highlighted that the rapid expansion of digital infrastructure is reshaping energy demand, stating that "to scale AI, you must scale power, and nuclear is the most efficient source we have." He elaborated on how nuclear power's reliability and scalability make it well-suited to meet the growing electricity needs associated with artificial intelligence, electrification, and advanced manufacturing.

The World Nuclear Association has cautioned that plans to expand nuclear power capacity may face challenges due to limited uranium supplies, according to a recent report, The Energy Mix, noted on September 17.

The association emphasizes the need for producers to secure new sources of this essential mineral, as global demand from reactors is projected to increase by a third — to 86,000 tonnes by 2030 and 150,000 tonnes by 2040 — while mine output is expected to decrease by half between 2030 and 2040.

The Financial Times notes that this "significant gap" between demand and supply forecasts poses a threat to the anticipated "renaissance" in nuclear power. The WMA advocates for extensive exploration, innovative mining methods, efficient permitting, and timely investment to ensure new uranium supply.

The demand for nuclear power is on the rise as countries aim to enhance energy security, and data center developers invest in carbon-free energy sources. Global nuclear capacity is expected to nearly double to 756 gigawatts by 2040, with significant growth coming from China and India. However, access to uranium is likely to progress more slowly, as it can take 10 to 20 years to begin mining after a discovery.

Ownership and Share Structure¹

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

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%.

Skyharbour has 204.46 million outstanding shares and 199.65M free float traded shares. Its market cap is CA$72.24 million. Its 52-week range is CA$0.28–CA$0.50 per share.