Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQX: SYHBF) (FSE: SC1P) will be acquiring the South Dufferin Uranium Project from Denison Mines Corp (TSX: DML), a 30,349-acre area in the Athabasca Basin spanning nine claims.
The Vancouver miner announced the acquisition on Thursday, which will add to its vast land package with ownership interest in 24 different properties now covering a total of 1,246,290 acres.
The purchase agreement is still pending approval from the TSX Venture Exchange and it would allow Skyharbour to purchase the project from Denison for six million shares (currently worth $2,340,000), one million non-transferable share purchase warrants and $125,000 cash.
The warrants would enable Denison to purchase the company’s shares for $0.60 a piece over a two-year period after the transaction’s conclusion.
Skyharbour has one of the largest project portfolios in the Basin and it plans to look for partners to help advance its exploration endeavours at South Dufferin going forward.
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Skyharbour announced in February that it had signed an exploration agreement with the English River First Nation for exploration activities within their traditional territory at the Russell Lake and Moore projects.
“South Dufferin complements our more advanced-stage exploration assets including Russell Lake, Moore and South Falcon Point and provides additional ground to option or joint-venture out to new partner companies as a part of our prospect generator business,” said Skyharbour’s President and CEO Jordan Trimble.
Currently, Skyharbour is focused on its ongoing 10,000-metre drill program at the Russell Lake project situated east of South Dufferin in the Basin. The drill program commenced at the end of January this year.
“With this transaction, Denison increases its ownership in Skyharbour in exchange for a prospective exploration property that became non-core in the Denison portfolio given our development and exploration focus in areas proximal to our flagship Wheeler River and McClean Lake properties,” said Denison’s President and CEO, David Cates.
Cates added that Denison was pleased to increase its shareholdings in Skyharbour and that it looked forward to continued collaboration between the companies.
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Last week, Denison discovered high-grade uranium mineralization at its Moon Lake South property in the Basin with the most notable grade of 2.88 per cent eU3O8 (equivalent uranium oxide) over 3.1 metres.
Other uranium miners operating in the Basin include CanAlaska Uranium Ltd. (TSX-V: CVV) (OTCQX: CVVUF) (FSE: DH7N), NexGen Energy (TSX: NXE) (NYSE: NXE), Basin Uranium Corp. (CSE: NCLR) (OTC: BURCF) (FSE: 6NP0), Azincourt Energy (TSX-V: AAZ) (OTCQB: AZURF) and Baselode Energy Corp. (TSX-V: FIND) (OTCQB: BSENF).
Skyharbour shares stayed flat at $0.39 Friday on the TSX Venture Exchange and Denison’s shares rose by 3.15 per cent to $1.48 on the Toronto Stock Exchange.