Denison Mines (TSX: DML) evidently is intensely interested in Skyharbour Resources’ (TSXV: SYH) Russell Lake Uranium project in the Athabasca Basin. The two parties have entered into an arrangement that will see the property dividend into four separate projects, with joint ventures put into place on each.
Russell Lake, which Skyharbour on Sunday announced it had acquired a full ownership interest in after buying out of a joint venture arrangement that was in place with Rio Tinto for $10 million, is found adjacent to Dension’s Wheeler River project. The project is now set to be split into the Russell Lake, Getty East, Wheeler North, and Wheeler River Inliers, with Denison to take 20%, 30%, 49% and 70% interests in those projects, respectively.
Denison has also entered into option arrangements that will allow them to acquire up to 70% of the Wheeler North and Getty East joint ventures.
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“As Denison nears receipt of final regulatory approvals for the Phoenix In-Situ Recovery mine proposed for our flagship Wheeler River property, we are also making measured investments in our project pipeline – including our next development assets and high-potential exploration properties. Given its proximity to Wheeler River, Denison has had an interest in adding Russell to our property portfolio for much of my nearly two decades with the Company,” commented Dension CEO David Cates.
In terms of compensation, Denison is to pay $18 million to Skyharbour as part of the joint ventures, consisting of $2 million in cash upon execution of the arrangement, with a further $16 million to be paid in cash or shares in two separate $8 million transactions by December 31, 2025.
Additional earn-in payments associated with the joint ventures include up to $28.5 million in spend and cash payments for Wheeler North, and $15 million at Getty East.
Skyharbour meanwhile must pay $10 million to Rio Tinto Exploration Canada by December 21, 2025 in connection with the cancellation of the prior agreement that was in place at Russell Lake.
Denison Mines last traded at $3.49 on the TSX.
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