Skyharbour Resources Ltd. announced that it has entered into a definitive repurchase agreement with Denison Mines Corp. whereby Denison will acquire an initial project interest in Skyharbour's Russell Lake Uranium Project and the parties have agreed to enter into four separate joint venture agreements at closing on various claims making up Russell. The Project is strategically located in the central portion of the Eastern Athabasca Basin of northern Saskatchewan, with access to regional infrastructure, including an all-weather road and powerline.
Strategic Agreement represents combined total project consideration of up to CAD 61.5 million consisting of cash or share payments to Skyharbour totaling up to CAD 21.5 million (including CAD 18.0 million before year end) plus expenditures totaling up to CAD 40.0 million for Denison to acquire between a 20% and 70% ownership interest over seven years in the claims making up Russell, with Skyharbour owning the remaining interests. Skyharbour will continue to directly advance its high-grade Moore Uranium project as well as the RL claims at Russell, while partner companies fund exploration at some of the Company's other projects. Given its proximity to Wheeler River, Denison has had an interest in adding Russell to 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.
