Uranium Explorer Secures Premium Asset Deal in Saskatchewan

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Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced the closing of its option agreement with Hatchet Uranium Co. to acquire interest in several of Skyharbour's many uranium projects in the Athabascan Basin of Saskatchewan.

Under the agreement, Hatchet may acquire an 80% interest in Skyharbour's 17,606-hectare (ha) Highway uranium property, and a 100% interest in its Genie, Usam, and CBX/Shoe projects, which total of 66,358 ha.

According to a release, the agreement provides Hatchet an opportunity to earn the 80% interest in Highway over a three-year period by fulfilling combined cash, share issuance and exploration expenditure commitments of CA$3.35 million. For the purchased property, Skyharbour will also receive units in the capital of Hatchet, each consisting of a share and a warrant, equal to 9.9% of the issued and outstanding shares of Hatchet.

"We are confident in the capable team behind Hatchet as they have plenty of experience in the Athabasca basin and we look forward to them unlocking value at these projects," Skyharbour President and Chief Executive Officer Jordan Trimble said when the deal was announced last fall. "We continue to execute on our strategy by adding value to our uranium project base in the Athabasca basin through strategic partnerships and prospect generation, as well as focused exploration at our co-flagship Russell and Moore projects."

Skyharbour said it will retain a 2% net smelter return (NSR) royalty from minerals mined and removed from the optioned property, of which Hatchet may purchase one-half, being 1%, at any time for CA$1 million.

'Very Positive Outlook'

Red Cloud Analyst David Talbot, in an updated research note on February 7, and said the firm was "encouraged by its very positive outlook and look forward to this year's aggressive uranium exploration results" at Skyharbour's co-flagship Russell Lake and Moore uranium projects, as well as its project generation business.

"Projects being advanced under joint venture or option agreements are expected to see 15,000-16,000 meters of drilling in 2025," wrote Talbot, who rated the stock a Buy with a CA$0.55 per share target price, a 62% increase over the share price at the time of Talbot's note.

"Considering the originally announced deal terms, the total payments for all JV and option agreements in SYH’s portfolio could amount to CA$36 million in exploration expenditures, CA$14 million in cash payments, and CA$20 million in partners’ shares," Talbot continued. About "CA$9 million of exploration expenditures have already been incurred, mostly from old JV agreements, leaving a significant number of expenditures, primarily from numerous recent option agreements, to be incurred in 2025."

According to its website, Skyharbour has an extensive portfolio of uranium exploration projects in Canada's Athabasca Basin, with 36 projects over 614,000 ha with nine partners and 20 projects available for option. In addition to being a high-grade uranium exploration company, Skyharbour utilizes a prospect generator strategy by bringing in partner companies to advance its secondary assets.

In an updated research note last year, Analyst Sid Rajeev of Fundamental Research Corp. wrote that Skyharbour "owns one of the largest portfolios among uranium juniors in the Athabasca Basin."

"Given the highly vulnerable uranium supply chain, we anticipate continued consolidation within the sector," Rajeev wrote. "Additionally, the rapidly growing demand for energy from the AI (artificial intelligence) industry is likely to accelerate the adoption of nuclear power, which should, in turn, spotlight uranium juniors in the coming months."

Details of Projects

The Highway project is about 41 kilometers south of the Rabbit Lake mine and 11 kilometers southwest of Uranium Energy Corp. (UEC:NYSE AMERICAN) West Bear uranium and cobalt-nickel deposits. Highway 905 runs through the property, providing excellent access for exploration and the project is in close proximity to regional infrastructure.

"There has been limited modern exploration carried out on the project but there is the potential for high-grade basement-hosted and unconformity-related uranium mineralization," Skyharbour said in a release. "The Highway project is located approximately seven km east of the present-day margin of the Athabasca basin but is believed to have been covered by Athabasca sandstone in the past."

The Genie property consists of five claims totaling 16,930 hectares, Skyharbour said. It is located about 48 kilometers northeast of Cameco Corp.'s (CCO:TSX; CCJ:NYSE) Eagle Point uranium mine (Rabbit Lake operation) and 40 kilometers north of Wollaston Lake Post.

Usam consists of 12 claims totaling 40,041 hectares about 16 kilometers northeast of Cameco's Eagle Point mine (Rabbit Lake operation). The project has numerous electromagnetic conductors that are associated with significant magnetic lows of the Wollaston domain.

The CBX property was recently expanded through staking to include five additional claims adjoining the previously staked CBX and Shoe properties, the company said. Both CBX and Shoe now consist of eight non-contiguous claims totaling 9,386 hectares. The claims are about 6.5 kilometers to 25 kilometers northeast of the Eagle Point uranium mine and cover the northern shore of Wollaston Lake including parts of Cunning Bay, Skyharbour noted.

The Catalyst: Could Tariff Wars Affect Market?

Writing for VettaFi, Ben Hernandez on Tuesday, noted that tariff wars that "appear to be underway" could affect the uranium market.

As U.S. President Donald Trump appears to support policy shoring up uranium as a vital nuclear mineral, he could look to subsidizing domestic projects in America. However, the U.S. will still need to rely on other uranium-producing countries like Canada, Hernandez noted.

"Collaboration between the United States and Canada will be crucial for establishing a resilient, secure, and expanded uranium supply chain,” the Center Strategic & International Studies said, according to Hernandez. "Currently, uranium supply is heavily dominated by Russia and China, which together control over 50% of the world's uranium enrichment capacity. This concentration poses significant risks to U.S. energy stability and national security."

The growth of artificial intelligence, the eventual adoption of electric vehicles (EVs), and the need for more net-zero power means to power it all means a renaissance in nuclear power is underway.

One major sign was Microsoft Corp.'s (MSFT:NASDAQ) recently announced deal with Constellation Energy Group (CEG:NYSE) to restart and buy all of the power from one of the shut-down reactors at its infamous Three Mile Island plant in Pennsylvania.

Ownership and Share Structure

Management, insiders, and close business associates own approximately 5% of Skyharbour.

According to Reuters, President and CEO Jordan Trimble owns 1.49%, and Director David Cates owns 0.65%. Institutional, corporate, and strategic investors own approximately 55% of the company.

Denison Mines owns 6.3%, Rio Tinto owns 2%, Extract Advisors LLC owns 13.76%, Alps Advisors Inc. owns 9.93%, Mirae Asset Global Investments (U.S.A) L.L.C. owns 6.28%, and Incrementum AG owns 1.05%, Reuters reported.

There are 204.46 million shares outstanding with 199.68 million free float traded shares, while the company has a market cap of CA$71.66 million and trades in a 52-week range of CA$0.31 and CA$0.56.