Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced a strategic partnership with Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) in which Denison will acquire initial interest claims in Skyharbour’s Russell Lake project, situated next to Denison’s flagship Wheeler River project, Haywood Capital Markets Analyst Marcus Giannini wrote in an updated research note on November 17.
"We view the transaction as a stamp of approval for the advanced-stage Russell Lake project, where Skyharbour has already outlined high-grade uranium mineralization, and which remains prospective for additional basement-hosted uranium discoveries," wrote the analyst, who did not give a traditional rating or price target for the security. "Further, we note the arrangement is set to leverage the combined strengths of Skyharbour and Denison's technical teams, with Denison already well familiar with the Russell Lake project."
Transaction Details
According to the agreement, the Russell property will be divided into four joint ventures named: Russell Lake, Getty East, Wheeler North, and Wheeler River Inliers. Denison will initially acquire ownership interests of 20%, 30%, 49%, and 70%, respectively, Giannini said. The parties have also agreed to earn-in agreements allowing Denison to increase its ownership in the Wheeler North and Getty East joint ventures to up to 70%.
The consideration for the ownership stake includes CA$21.5 million in cash or shares to Skyharbour, along with up to CA$40 million in expenditures for Denison to acquire between a 20% and 70% stake over seven years in the claims comprising Russell, with Skyharbour retaining the remaining interests, the report noted.
Skyharbour is set to receive CA$18 million in cash and shares by year-end, with an initial upfront cash payment of CA$2 million and the remainder payable through a combination of cash and shares at Denison’s discretion. The transaction is expected to close on or before December 21.
Property Updates
Wheeler River North covers 16,409 hectares over eight claims, Giannini wrote. Denison can earn a 70% interest by investing CA$25 million in exploration and making cash payments totaling CA$3.5 million over seven years, with CA$10 million required within the first 48 months of closing. Denison will become the operator of Wheeler River North once the transaction closes.
Russell Lake covers 53,192 hectares over 16 claims. Upon closing, Skyharbour will continue as the operator of Russell Lake, and Denison has agreed to fund its pro rata share of up to CA$10 million in total project expenditures to maintain its initial interest.
The Wheeler River Inliers cover 608 hectares within Denison’s Wheeler River project, including the West Russell and C-Block exploration target areas. Denison will become the operator upon closing.
And finally, Getty East spans 3,105 hectares. Skyharbour will remain the operator after the transaction closes. Denison can earn up to a 70% interest by spending CA$15 million on exploration over seven years, with CA$5 million required within 48 months of closing. After completing the second phase of the earn-in (CA$10 million), Denison can choose to become the operator of the project.
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Important Disclosures:
- Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Disclosures for Haywood Capital Markets, Skyharbour Resources Ltd., November 17, 2025:
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