Uranium producers, Skyharbour Resources Ltd. (CVE: SYH) (OTCMKTS: SYHBF) (Frankfurt: SC1P) and Denison Mines Corp. (TSE: DML) (NYSE American: DNN) have joined forces on a uranium exploration partnership in northern Saskatchewan.
Announced on Monday, Denison will acquire an initial interest in Skyharbour’s Russell Lake Uranium Project under a definitive purchase agreement. The project is located in the Eastern Athabasca Basin. The deal also establishes four joint ventures covering various claims at Russell, enhancing collaboration and funding for ongoing exploration.
The Russell Lake Project benefits from its central location within the Athabasca Basin and access to regional infrastructure, including all-weather roads and powerlines. The strategic agreement sets a combined total project consideration of up to CAD$61.5 million.
Skyharbour will receive up to CAD$21.5 million in cash or share payments, with CAD$18 million scheduled before year-end. Denison will invest up to CAD$40 million in exploration expenditures over seven years, earning between a 20 and 70 per cent ownership in the Russell claims while Skyharbour retains the remainder.
Denison is a leading uranium producer with a market capitalization exceeding CAD$3 billion. The company is developing the nearby Wheeler River Project, which shares a 55-kilometre border with Russell. Denison already holds a substantial stake in Skyharbour and now becomes an active strategic partner in advancing exploration at Russell.
The Russell Project will be divided into four joint ventures: Russell Lake (RL), Getty East, Wheeler North, and the Wheeler River Inlier Claims. Skyharbour will initially own 80, 70, 51, and 30 per cent of each area, respectively.
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Denison will hold interest across four joint ventures
Both companies will leverage their technical teams to maximize exploration efficiency. Denison has committed a minimum of CAD$4 million in exploration over the first two years at Wheeler North and Getty East combined. In addition, Denison will fund its 20 per cent pro-rata share at RL until total exploration spending reaches CAD$10 million, ensuring sustained investment in the project.
Skyharbour will remain the operator of RL, overseeing over 53,192 hectares of claims. Furthermore, Skyharbour will manage initial exploration at Getty East, while Denison funds activity to meet earn-in targets. The arrangement allows Skyharbour to advance its uranium projects with substantial financial support, including operational revenue from the McGowan Lake exploration camp.
Skyharbour also continues direct work on its high-grade Moore Uranium Project, while Denison and other partners fund exploration on selected claims. The Strategic Agreement is structured to provide long-term financial stability for Skyharbour through 2026, enhancing both exploration and corporate initiatives.
Upon closing the agreement, Denison will hold initial interests across the four joint ventures: 49 per cent in Wheeler North, 20 per cent in RL, 30 per cent in Getty East, and 70 per cent in the Wheeler River Inlier claims.
Wheeler North, covering 16,409 hectares over eight claims, hosts targets near the Grayling and Fork Zones.
Initially, Denison will hold a 49 per cent interest and has the option to increase this to 70 per cent, taking on operator duties. Russell Lake, with 53,192 hectares over 16 claims, includes target areas such as Christie Lake and Taylor Bay.
Skyharbour retains 80 per cent ownership and remains operator. Denison’s participation is funded to maintain a pro-rata interest capped at CAD$10 million in total expenditures.
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Agreement includes $2M upfront cash payment
The Wheeler River Inliers, 608 hectares across two claims, host the West Russell and C-Block exploration areas. Denison will become operator with a 70 per cent interest. Getty East, comprising 3,105 hectares, is adjacent to Cameco’s Cree Zimmer property, which includes Key Lake operations. Skyharbour remains operator with a 70 per cent interest, while Denison has the option to acquire up to 70 per cent and assume operator responsibilities.
The agreement includes a CAD$2 million upfront cash payment and CAD$16 million in deferred consideration, payable on or before December 31st, 2025. The deferred amount will be paid in two tranches, each potentially in cash or Denison shares.
Skyharbour will continue to operate the McGowan Lake exploration camp, earning administrative fees from Denison. Existing royalties on Russell claims remain in effect.
This partnership strengthens Skyharbour’s financial position, providing immediate and deferred capital to fund exploration and corporate activities. Furthermore, it aligns technical expertise from both companies to efficiently advance uranium projects. By combining resources and knowledge, Skyharbour and Denison aim to accelerate the development of high-potential targets within the Athabasca Basin.
The deal also underscores Denison’s commitment to expanding its presence in the region. In addition to financial investment, Denison brings operational and technical experience from its Wheeler River Project. This collaboration enhances exploration effectiveness and ensures that both companies can pursue high-priority targets strategically.
