Uranium Explorer Secures Massive $61.5M Partnership in Athabasca Basin
Research Report

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Disclosures for Red Cloud Securities, Skyharbour Resources Ltd., November 17, 2025:

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Skyharbour Resources Ltd.'s (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) new strategic partnership with Denison Mines (TSX:DML, Not Rated) to establish four new joint ventures at its Russell Lake project in the Athabasca Basin is "very positive," according to an updated research note by Red Cloud Securities Analyst David Talbot on November 17.

The new joint ventures are: 1) Russell Lake claims (RL), 2) Wheeler North, 3) Getty East, and 4) Wheeler River Inliers, wrote Talbot.

Denison can acquire between 20% and 70% interest in these joint ventures for a total consideration of up to CA$61.5 million in cash and exploration expenditures. This follows SYH's consolidation of a 100% interest in Russell Lake by purchasing Rio Tinto Plc's (RIO:NYSE; RIO:ASX; RIO:LSE; RTNTF:OTCMKTS) 42.3% minority stake for CA$10 million in cash and a 0.25% NSR.

"In our view, this is a transformative deal for SYH that should allow for more aggressive exploration at its Russell Lake properties, which border Denison’s Wheeler River project, currently in its final permitting stages," Talbot wrote. "Irrespective of current valuation, we believe the real prize lies in increased exploration activity in the Russell Lake area, thus enhancing the chances of additional high-grade uranium discoveries. The deal gives Russell Lake a major stamp of approval by Denison, while providing access to Denison’s very deep and experienced technical team. Meanwhile, SYH gets to retain the bulk of interest in the Russell Lake claims and generate revenue through an administrative fee to be charged from Denison at its McGowan Lake exploration camp at the project."

Denison Is Acquiring Substantial Interest in Russell Lake Properties

Denison is set to acquire initial ownership in Russell Lake, Getty East, Wheeler North, and Wheeler River Inliers, of 20%, 30%, 49%, and 70%, respectively, along with options to earn up to 70% interest in Wheeler North and Getty East through separate option agreements, Talbot noted.

The CA$61.5 million consideration includes: 1) CA$18 million in cash payments before the end of 2025 (CA$2 million upfront and CA$16 million in two tranches), and 2) an additional CA$3.5 million cash and CA$41.5 million in exploration expenditures for option earn-ins over the next seven years.

SYH retains 80% share in 70% of original Russell Lake area (RL claims), which comprises 53,192 hectares of the original 73,314-hectare project area. Key prospective targets on the property include the Christie Lake basement target where drilling returned 0.17% U3O8 over 0.4 meters, the Blue Steel target area that consists of graphitic metasediments last explored in 2008, the Kowalchuk area that hosts multiple inferred structural trends with limited modern exploration, and multiple other EM conductors. Denison will need to fund its 20% pro-rata participation interest through the end of 2029 or until CA$10 million in total expenditures has been reached.

Adjusting Valuation

"We now value SYH’s share in the Russell Lake project based on the new JV terms," Talbot wrote. "Each JV’s current valuation estimate is based on CA$18 million cash, weighted by hectares acquired by Denison in respective JVs."

Talbot maintained the firm's Buy rating and increased its target for Skyharbour to CA$0.65/share (was CA$0.55/share). "We apply a 0.80x multiple to our sum-of-parts NAVPS of CA$0.81 (was CA$0.64), to arrive at our target," he wrote.