Skyharbour Resources Ltd. (TSX-V:SYH) (OTC
Grey:SYHBF) (Frankfurt:SC1N) (the “Company”) is pleased to announce
the signing of an agreement with Denison Mines Corp. (TSX:DML)
(NYSE MKT:DNN) (“Denison”) that grants the Company an option to
acquire a 100% interest in the Moore Lake Uranium Project (“Option
Agreement”). The 35,705 hectare Moore Lake Project is an advanced
uranium exploration property strategically located in the eastern
portion of the Athabasca Basin region, which is known for its large
scale and high grade uranium deposits and producing uranium mines.
Previous exploration efforts on the property discovered high grade
uranium mineralization highlighted by drill hole ML-61, which
intersected 4.03% eU3O8 over 10 metres at the Maverick Zone. The
depth to the unconformity on the property is relatively shallow and
significant additional discovery potential remains over several
conductive trends.
Skyharbour’s Uranium Project Map in the
Athabasca Basin:
http://skyharbourltd.com/_resources/SYH_Landpackage_2014.jpg
Highlights:
- Option to acquire 100% interest in the Moore Lake Uranium
Project, a mature uranium exploration property in the eastern
Athabasca Basin near existing infrastructure with known high grade
uranium mineralization and significant discovery potential
- As part of the Option Agreement, Skyharbour will issue
18,000,000 common shares and make staged cash payments over five
years totaling $500,000 to Denison as well as incur $3,500,000 in
exploration expenditures over five years to complete its
acquisition of a 100% interest in the property (detailed terms
provided below)
- Denison to become large, strategic shareholder of Skyharbour,
holding approximately 18.7% of the shares outstanding (including
Denison’s existing share position in the Company) and David Cates,
Denison President and CEO, to join Skyharbour’s Board of
Directors
- Moore Lake hosts a high grade uranium pod called the Maverick
Zone, which was discovered by JNR Resources in 2002; drill results
include 4.03% eU3O8 over 10 metres, including 20% eU3O8 over 1.4
metres starting at a depth of 264.68 metres in hole ML-61, plus
5.14% U3O8 over 6.2 metres in hole ML-55, and 4.01% U3O8 over 4.7
metres in hole ML-48
- The property has been the subject of extensive exploration with
approx. $30 million in expenditures and over 132,000 metres of
diamond drilling in 370 drill holes
- In addition to the Maverick Zone, diamond drilling in several
other target areas has intersected multiple conductors associated
with significant structural disruption, strong alteration and
anomalous uranium and pathfinder element concentrations
- Skyharbour adds a high grade uranium asset to its project
portfolio with significant exploration upside to complement its
other projects in the Basin
Skyharbour’s President and CEO, Jordan Trimble
commented, “We are very pleased to have reached an agreement with
Denison to acquire up to a 100% interest in Moore Lake, as this is
a transformational deal for Skyharbour. Uranium properties with the
pedigree and potential of Moore Lake are few and far between. The
project has extensive historical exploration, high grade
mineralized results including 4.03% eU3O8 over 10 metres, and
several shallow exploration targets that remain with the potential
to generate further discoveries. With a recovery in the uranium
market on the horizon, Skyharbour views this transaction as a
unique opportunity to acquire a prime exploration property before
the next uranium bull cycle begins. Having Denison onboard as a
strategic shareholder and David Cates joining our Board of
Directors serves to bolster Skyharbour’s profile and access to
capital markets moving forward. We believe this is a highly
accretive deal for the Company’s shareholders as we add a high
grade uranium property with strong exploration upside potential to
our portfolio to complement our other uranium projects in the
Basin.”
Moore Lake
Uranium Project:
The Moore Lake Uranium Project consists of 12
contiguous claims totaling 35,705 hectares located 42 kilometres
northeast of the Key Lake mill, approx. 20 kilometres east of
Denison’s Wheeler River project, and 39 kilometres south of
Cameco’s McArthur River mine. Unconformity-hosted uranium
mineralization was discovered on the property at the Maverick Zone
in 2002 and several high grade intercepts have been drilled since.
Drill hole ML-61 contained the best result drilled on the property
to date, which returned 4.03% eU3O8 over 10 metres, including 20%
eU3O8 over 1.4 metres, starting at a depth of 264.68 metres. Drill
holes ML-55 and ML-48 also encountered high-grade mineralization,
returning 5.14% U3O8 over 6.2 metres, and 4.01% U3O8 over 4.7
metres, respectively. The depth to the unconformity on the property
is relatively shallow, with the thickness of the sandstone cover
varying from less than 125 metres on the property's eastern side to
over 325 metres on the property's northwestern side. Basement rocks
are predominantly paragneisses belonging to the Wollaston Domain. A
large mafic sill known as the “Moore Lake complex” partially
overlies a portion of the eastern side of the property. The
property has been the subject of extensive historic exploration
with approx. $30 million in expenditures, and over 132,000 metres
of diamond drilling completed in 370 drill holes. The project is
accessible via ice roads from the McArthur River mine haul road and
float or ski equipped aircraft.
Moore Lake Uranium Project Claims
Map:http://skyharbourltd.com/_resources/maps/MooreLakeRegionalTenure.jpg
Since 1969, the property has undergone episodic
exploration by several companies including Noranda, AGIP, BRINEX,
Cogema, Kennecott/JNR Resources and IUC/Denison. In April of 2002
the Maverick Zone was discovered and in the fall of 2003,
International Uranium Corporation, who then merged with Denison,
optioned 75% of the property from JNR and took over operatorship.
Subsequently Denison acquired the remaining 25% interest from JNR
for an undivided 100% in February of 2013, when it acquired all of
the outstanding shares of JNR. Skyharbour’s head geologist and
director Rick Kusmirski was the President and CEO of JNR Resources
during that time. Exploration programs carried out on the project
lands include an assortment of airborne and ground electromagnetic
and magnetic surveys, ground gravity, seismic, IP/resistivity and
geochemical surveys, mapping, prospecting, lake sediment sampling
programs and the drilling of some 325 diamond drill holes. From
mid-2000 onwards, the primary focus of exploration has been the 3.5
kilometre long Maverick structural corridor where pods of high
grade unconformity-type uranium mineralization have been
intersected. The best intercepts to date were obtained from drill
holes testing the southwestern portion of this corridor. The
potential of intersecting additional mineralization along this
corridor is very good and as such it will continue to be a high
priority target area. Also of note is that both basement and
unconformity-type uranium mineralization have been intersected in a
number of underexplored target areas on the property.
Moore Lake Uranium Project Geophysics
Map:http://skyharbourltd.com/_resources/maps/MooreLake-Basic-geo-revamp.jpg
In addition to the Maverick Zone, diamond
drilling in several other geophysical target areas, has intersected
multiple conductors associated with significant structural
disruption, strong alteration and anomalous uranium and pathfinder
element concentrations. This bodes well for the possibility of
discovering additional high grade uranium zones in these areas.
Under the Option Agreement, Skyharbour will
become the operator of the Moore Lake project and is planning to
complete additional infill and exploratory drilling on the Maverick
Zone as well as on other high priority target areas on the
property. The initial drill program is being planned with input
from both the Skyharbour and Denison technical teams.
Skyharbour’s Head Technical Advisor and a
Director, Rick Kusmirski commented: “I’ve always considered the
Moore Lake Project to be one of the most geologically prospective
exploration projects in the Basin, with the potential to host a
sizeable high grade uranium deposit. JNR made the initial high
grade discovery at the Maverick Zone and after a number of years we
sold the project and company to Denison. I am very excited to get
back to work on this project with the Skyharbour team. In addition
to the Maverick structural corridor, which still has a number of
targets that are untested and require follow-up, there are at least
nine other target areas throughout the property that contain well
defined and extensive conductive systems. The nominal amount of
drilling that was carried out in these areas intersected well
defined structures associated with multiple graphitic lithologies.
Analysis of the drill core returned highly anomalous geochemistry,
including uranium mineralization in seven of the target areas.”
David Cates, President and CEO of
Denison, Joins Board of Directors:
The Company is pleased to announce that David
Cates, President and CEO of Denison and Uranium Participation Corp.
(TSX:U), will be joining Skyharbour’s Board of Directors. Mr. Cates
is a Chartered Professional Accountant (CPA, CA) and holds Master
of Accounting (MAcc) and Honours Bachelor of Arts (BA) degrees from
the University of Waterloo. Prior to his appointment as President
and CEO of Denison, Mr. Cates served as Denison's Vice President
Finance, Tax and CFO. As CFO, Mr. Cates played a key role in the
Company's mergers and acquisitions activities - leading the
acquisition of Rockgate Capital Corp. and International Enexco Ltd.
Mr. Cates joined Denison in 2008 and held the position of
Director, Taxation prior to his appointment as Chief Financial
Officer. Prior to joining Denison, Mr. Cates held positions
at Kinross Gold Corp. and PwC LLP with a focus on the resource
industry. As part of the Option Agreement, Denison is
entitled to nominate a member to Skyharbour’s Board of Directors,
so long as Denison maintains a minimum ownership position of 5% in
the Company.
Denison’s President and CEO, David Cates
commented: “Denison is continuing to focus its efforts and budgets
on the Company’s flagship Wheeler River project – which is in the
process of advancing from a successful Preliminary Economic
Assessment to a Prefeasibility Study together with extensive
exploration focused on delineating new and existing resources.
Partnering with Skyharbour is the perfect way to ensure Moore Lake
continues to be explored for potentially significant
mineralization. While Denison wasn’t actively looking to sell its
position in the Moore Lake property, we couldn’t pass on an
opportunity to join forces with the dynamic leadership team at
Skyharbour and their strong will to take Moore Lake through the
next phase of exploration.”
Terms of the Agreement:
Under the terms of the Option Agreement, which
is subject to TSX Venture Exchange approval, Skyharbour may acquire
a 100% interest in the Moore Lake project in consideration for the
issuance of 18,000,000 preconsolidated shares and staged cash
payments totaling $500,000 over the next five years (all dollar
figures are Canadian dollars). Skyharbour has also agreed to fund
$3,500,000 in exploration expenditures on the Moore Lake Project
over the same five year period and will act as project operator.
Skyharbour must make the aggregate cash payment of $500,000 to
Denison and incur expenditures of $3,500,000 on the property on or
before July 31st, 2021 in accordance with the following
schedule:
- $50,000 in cash and $500,000 in exploration expenditures on or
before July 31st, 2017
- $50,000 in cash and $500,000 in exploration expenditures on or
before July 31st, 2018
- $100,000 in cash and $500,000 in exploration expenditures on or
before July 31st, 2019
- $100,000 in cash and $1,000,000 in exploration expenditures on
or before July 31st, 2020
- $200,000 in cash and $1,000,000 in exploration expenditures on
or before July 31st, 2021
Once Skyharbour acquires its 100% interest in
the property, Denison may exercise a buyback option (“Buyback
Option”) to repurchase a 51% interest in the property by making a
cash payment of $200,000 and spending $6,750,000 in exploration
expenditures on the property over the following three year period.
The parties would then form a joint venture. If Denison fails to
complete the Buyback Option, Skyharbour would retain 100% ownership
in the property.
Provided this first Buyback Option is not
exercised by Denison, Skyharbour would own 100% of the property and
would have an additional five year period to incur an additional
$3,000,000 in exploration expenditures on the project (“Additional
Expenditures”). At this point, Denison may elect to exercise a
second buyback option to repurchase a 51% interest in the property
by making a cash payment of $500,000 and spending $16,500,000 in
exploration expenditures on the property over the following four
year period. The parties would then form a joint venture. If
Denison fails to complete this second buyback option, Skyharbour
would retain 100% ownership in the property.
Provided the first Buyback Option was not
exercised by Denison and Skyharbour does not complete the
Additional Expenditures within the allotted five year period,
Denison may elect to exercise a buyback option at any time to
repurchase a 51% interest in the property by making a cash payment
of $500,000 and spending at least 2.5 times the expenditures
incurred by Skyharbour since the beginning of the Option Agreement.
The parties would then form a joint venture.
Private Placement and Share
Consolidation:
Skyharbour has received board approval for the
consolidation of the Company's issued and outstanding share
capital. The intended consolidation will be on a basis of one
post-consolidation common share for every four pre-consolidation
common shares. This consolidation will reduce the issued and
outstanding shares of the Company from 89,043,594 (pre-Moore Lake
Option Agreement) to approximately 22,260,890 shares, assuming no
other change in the issued capital. Skyharbour’s outstanding
options and warrants will also be adjusted on the same basis (4 for
1) as the common shares, with proportionate adjustments being made
to exercise prices. The Company does not intend to change its name
or its current trading symbol in connection with the proposed share
consolidation. The consolidation is subject to approval by the TSX
Venture Exchange.
Skyharbour also announces that it has arranged a
non-brokered private placement of up to 13,000,000 units (the
"Unit") at a price of $0.15 per unit on a post-consolidation basis
to raise proceeds of up to $1,950,000. Each Unit consists of
one common share and one non-transferable share purchase warrant
(the "Warrant"). Each Warrant will entitle the holder to purchase
one common share for a period of five years at a price of $0.27 per
share, on a post-consolidation basis. The Company intends to
utilize the proceeds from this private placement for exploration
and general working capital purposes. A finder's fee of up to 7%
cash and 7% non-transferable warrants (the "Finder's Warrants") may
be paid in connection with part of this private placement. Each
Finder's Warrant will entitle the finder to purchase a common share
at a price of $0.27 per share, on a post-consolidation basis, for a
period of two years from the closing date of the private placement.
The private placement is subject to TSX Venture Exchange
acceptance.
Qualified Person:
Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s
Head Technical Advisor and a Director, as well as a qualified
person, has reviewed and approved the technical aspects of this
news release and is the Qualified Person as defined by National
Instrument 43-101. All historical results regarding the Moore Lake
Uranium project have come from publicly disclosed information and
Rick Kusmirski, a Director of Skyharbour, was the President of JNR
Resources during the relevant period.
About Skyharbour Resources
Ltd.:
Skyharbour holds an extensive portfolio of
uranium and thorium exploration projects in Canada's Athabasca
Basin and is well positioned to benefit from improving uranium
market fundamentals with five drill-ready projects. In addition to
the Moore Lake Uranium Project Option, the Company owns a 100%
interest in the Falcon Point (formerly Way Lake) Uranium Project on
the eastern perimeter of the Basin which hosts an NI 43-101
inferred resource totaling 7.0 million pounds of U3O8 at 0.03% and
5.3 million pounds of ThO2 at 0.023%. The project also hosts a high
grade surface showing with up to 68% U3O8 in grab samples from a
massive pitchblende vein, the source of which has yet to be
discovered. Skyharbour has a 50% interest in the large,
geologically prospective Preston Uranium Project proximal to
Fission Uranium’s Triple R deposit as well as NexGen Energy’s Arrow
deposit. The Company’s 100% owned Mann Lake Uranium project on the
east side of the Basin is strategically located adjacent to the
Mann Lake Joint Venture operated by Cameco with partners Denison
Mines and AREVA, where high-grade uranium mineralization was
recently discovered. Skyharbour’s goal is to maximize shareholder
value through new mineral discoveries, committed long-term
partnerships, and the advancement of exploration projects in
geopolitically favourable jurisdictions.
To find out more about Skyharbour Resources Ltd.
(TSX-V:SYH) visit the Company’s website at
www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
“Jordan
Trimble”
Jordan TrimblePresident and CEO
For further information contact myself or:Nick FindlerCorporate
Communications Skyharbour Resources Ltd. Telephone: 604-687-3376
Toll Free: 800-567-8181 Facsimile: 604-687-3119 Email:
info@skyharbourltd.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that
may be deemed to be "forward-looking statements". All statements in
this release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements. Although management
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, and actual results or
developments may differ materially from those in the
forward-looking statements. The Company undertakes no obligation to
update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change. Factors
that could cause actual results to differ materially from those in
forward-looking statements, include market prices, exploration and
development successes, continued availability of capital and
financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.
Denison Mines (TSX:DML)
Historical Stock Chart
From Mar 2024 to Apr 2024
Denison Mines (TSX:DML)
Historical Stock Chart
From Apr 2023 to Apr 2024