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In a landmark development for the uranium exploration sector, Skyharbour Resources Ltd. (TSX.V: SYH) and Denison Mines Corp. (TSX: DML; NYSE American: DNN) announced two interconnected transactions that consolidate ownership of the Russell Lake Uranium Project and establish a major new strategic alliance. The deals, revealed on November 16 and 17, 2025, position Russell Lake for accelerated exploration and potential multi-deposit discoveries.

The announcements come at a time of renewed optimism in the uranium market, driven by global nuclear energy renaissance and supply constraints. With Russell Lake sharing a 55-kilometer border with Denison's flagship Wheeler River Project (home to the high-grade Phoenix and Gryphon deposits), the partnership could unlock significant synergies in one of the world's premier uranium districts.

The Two-Phase Transaction: Consolidation Followed by Collaboration

The transactions unfolded in rapid succession:

1. Acquisition of Rio Tinto's Stake (November 16, 2025) Skyharbour agreed to purchase Rio Tinto Exploration Canada Inc.'s (RTEC) approximate 42.3% minority interest in Russell Lake for C$10 million in cash (C$2 million deposit + C$8 million at closing, expected by December 21, 2025). In return, Rio Tinto retains a modest 0.25% NSR royalty. This consolidates Skyharbour's ownership to 100%, ending Rio Tinto's passive partnership and clearing the path for more aggressive advancement.
2. Strategic Agreement with Denison Mines (November 17, 2025) Immediately following, Skyharbour entered a definitive agreement with Denison, dividing the newly 100%-owned Russell Lake into four separate joint ventures:
   • Russell Lake Claims (over 53,192 ha, ~70% of the project): Skyharbour 80% (operator), Denison 20% (funding partner initially).
   • Wheeler North: Skyharbour starts at 51%, Denison 49%; Denison can earn to 70% by spending C$25 million over seven years + C$3.5 million in cash payments to Skyharbour.
   • Getty East: Skyharbour starts at 70%, Denison 30%; Denison can earn to 70% by spending C$15 million over seven years (Skyharbour remains operator initially).
   • Wheeler River Inlier Claims: Denison immediately 70%, Skyharbour 30%.

Total potential consideration to Skyharbour: up to C$61.5 million, including up to C$21.5 million in cash/shares (C$18 million before year-end) and C$40 million in exploration expenditures. Denison operates Wheeler North and the Inliers from the start, while Skyharbour operates the rest and maintains its state-of-the-art exploration camp at McGowan Lake.

Jordan Trimble, CEO of Skyharbour, emphasized the rationale: "The sheer size of Russell Lake – over 73,000 hectares with tens of kilometers of prospective conductors – has been a challenge for a junior to advance alone. Breaking it into focused JVs allows two motivated teams to accelerate discovery."

David Cates, President and CEO of Denison Mines, added: "We've eyed this ground for years. It's adjacent to Wheeler River, highly prospective, and this structure incentivizes aggressive spending. It's transformative for Skyharbour and expands our footprint meaningfully."

Why Russell Lake Matters: Prime Location, Infrastructure, and Discovery Potential

Located on the eastern margin of the Athabasca Basin, Russell Lake lies along the same high-grade corridor that hosts Cameco's McArthur River and Key Lake operations, as well as Denison's Wheeler River (Phoenix expected to be the next new mine in the basin).

Key advantages highlighted in the interview:

• Infrastructure: Highway 914 (haul road to McArthur River) and a branch to Phoenix run through the property. A high-voltage powerline and Skyharbour's 40+ person camp enable low-cost, year-round drilling.
• Drilling Economics: All-in costs ~C$350 per meter – among the lowest in the basin – with most targets at shallow depths (250-500 meters).
• Proven Mineralization: Historical and recent drilling has intersected high-grade uranium, including multi-percent U3O8 hits at Grayling/Fork and extensions of Wheeler River-style conductors at Fox Lake Trail.
• Multiple High-Priority Targets:
  • Wheeler North: Grayling, Fork, and direct extensions from Wheeler River.
  • Getty East: On-trend with Key Lake deposits (e.g., Little Man Lake, Man Lake).
  • Russell Lake Claims: Christie Lake, Cowlchuck Lake, and shallow southern targets near the basin edge.
  • Combined with Skyharbour's adjacent 100%-owned Moore Lake Project (high-grade intercepts >20% U3O8), the district-scale package now exceeds 100,000 hectares.

Trimble and Cates both expressed confidence in "at least one, if not multiple" new discoveries, noting the project's proximity to Phoenix (ISR-amenable, high-grade) and existing mills.

Operational Synergies and Team Alignment

A standout feature is the close-knit teams:

• Skyharbour's VP Exploration, Serdar Donmez, is highly experienced, a Denison alumnus with intimate knowledge of the Wheeler River geology.
• Denison is already a major Skyharbour shareholder and board participant (Cates sits on Skyharbour's board).

Cates joked about needing a "traffic cop" on Highway 914 with dual drilling programs ramping up. Collaboration will be seamless, with shared logistics from the Russell camp.

Financial and Strategic Implications

For Skyharbour:

• Net ~C$8 million non-dilutive cash inflow by year-end (after Rio payment), funding operations into 2027.
• Retained majority control and operatorship on the bulk of Russell Lake.
• Exposure to Denison-funded upside on earn-in portions.
• Bolsters its prospect generator model: Potential partner spending across portfolio now exceeds C$118 million.

For Denison:

• Strengthens land position around Wheeler River ahead of Phoenix construction (FID targeted 2026).
• Adds high-potential exploration pipeline without distracting from development focus.
• Leverages strong balance sheet (>C$700 million in cash, investments, physical uranium).

Broader Portfolio Updates

Skyharbour:

• Pending assays from 2025 drilling at Russell and Moore.
• Extensive partner-funded programs across 13 other projects.
• One of the largest landholders in the Athabasca (>1.5 million acres).

Denison:

• Wheeler River (Phoenix) advancing to FID in 2026; 85% engineering complete, key permits incoming.
• Successful ramp-up at McClean Lake North (SABRE mining method) generating early cash flow and producer status.
• C$345 million convertible note issuance strengthens financing flexibility.

Outlook: A Catalyst-Rich 2026

Investors can anticipate:

• Assay releases (near-term).
• Detailed 2026 drill plans (multi-rig programs at RL, Moore, and Denison-operated areas).
• Regulatory milestones for Phoenix.
• Potential discoveries in a tightening uranium market.

As Trimble concluded: "This is the ticket to expedited discovery at Russell." Cates echoed the excitement: "Nothing greater than making a discovery – and no better partner than Skyharbour."

With two seasoned teams aligned on world-class ground, the Russell Lake partnership could redefine exploration success in the Athabasca Basin and deliver substantial value for shareholders of both companies.

Watch the interview here:

Disclaimer: This article/interview is not a recommendation to buy any shares, products, or services. Always conduct your due diligence and consult with a financial advisor.