October 22, 2020
Vancouver, BC – Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB: SYHBF) (Frankfurt: SC1P) (the “Company”) is pleased to announce the execution of a letter of intent (the “LOI”) with Australian-registered Pitchblende Energy Pty Ltd (“Pitchblende”), which provides Pitchblende an earn-in option to acquire an 80% working interest in the North Falcon Point Uranium Project, to be renamed the Hook Lake Uranium Project (the “Property”).
Skyharbour’s Uranium Project Map in the Athabasca Basin:
Under the LOI, and subject to completion of the acquisition of Pitchblende by ASX-listed Valor Resources Limited (ASX: VAL) (“Valor”), Pitchblende will contribute cash and exploration expenditure consideration totaling CAD $3,925,000 over a three-year period (“Project Consideration”). Of the Project Consideration, $425,000 will be in cash payments to Skyharbour as well as $3,500,000 in exploration expenditures. Valor will also issue a total of 250,000,000 shares (“Consideration Shares”), which will be subject to a voluntary escrow agreement and released over a period of three years.
Skyharbour’s President and CEO, Jordan Trimble commented: “Skyharbour continues to execute on its business model by adding value to its project base in the Athabasca Basin through strategic partnerships and focused mineral exploration. This LOI with Pitchblende at North Falcon Point effectively utilizes our prospect generator model to advance the Company’s other projects with partner companies. We are excited to have the opportunity to work with new partners in Pitchblende and Valor led by experienced and dynamic management and technical teams. Furthermore, Skyharbour will maintain a 100% interest in the southern portion of the Falcon Point Project retaining ownership of the Frasers Lakes Uranium and Thorium Deposit. This LOI complements the option agreements signed with Orano Canada and Azincourt Energy which collectively will generate steady news flow over the next several years in addition to the continued exploration at our flagship Moore Uranium Project.”
North Falcon Point Project Summary:
Pitchblende will have the right to earn an 80% working interest in the North Falcon Point Project (to be renamed the Hook Lake Uranium Project) located 60 km east of the Key Lake Uranium Mine in northern Saskatchewan. Covering 25,846 hectares, the 16 contiguous mineral claims host several prospective areas of uranium mineralisation including:
- Hook Lake / Zone S – High grade surface outcrop with reported grades in grab samples up to 68% U3O8; a bio-geochemical survey carried out over the trenches in 2015 responded positively with along-strike anomalies 2 km to the northeast
- Nob Hill – Fracture-controlled vein-type uranium mineralisation on surface outcrop with up to 0.130% – 0.141% U3O8 in grab samples; diamond drilling intersected anomalous uranium in several drill holes with values up to 422 ppm U over 0.5 m
- West Way – Vein type U mineralisation within a NE-trending shear zone; grab samples taken from the surface showing contained variable uranium values including up to 0.475% U3O8 and drilling of the structure intersected the altered shear zone at depth, along with anomalous Cu, Ni, Co, As, V, U, & Pb
- Grid T – Fracture-hosted secondary uranium mineralisation in sheared calc-silicates and marbles in a 100 m x 20 m zone of anomalous radioactivity with grab samples having up to 800 ppm U
- Alexander Lake Boulder Field – 30 biotite-quartz-k-feldspar pegmatite boulders NE of Alexander Lake; the best results include 360 ppm U, 1,400 ppm U and 1,600 ppm U respectively
- Thompson Lake Boulder Field – Numerous radioactive boulders and blocks of pegmatized meta-arkose, pegmatite, and granite; the best value obtained was 738 ppm U from a granite boulder
- NE Alexander Lake – Several calc-silicate, plagioclase-quartz granulite, quartzite, and meta-arkose boulders with up to 4,800 ppm U, 7,600 ppm Mo and 1,220 ppm Ni
The project area is in close proximity to two all-weather northern highways and grid power. Historical exploration has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area. Compilation and reinterpretation of previous exploration work results is already underway. It is anticipated that the initial phase of exploration work by Pitchblende will include further bio-geochemical surveys, detailed UAV magnetics, ground gravity and resistivity surveys as well as detailed geological and structural mapping. Based on this work drill targets will be selected. If carried to completion, a joint venture would be formed being 80% to Pitchblende and 20% to Skyharbour.
Option Agreement Terms for the North Falcon Point Project:
Under the terms of the LOI, Pitchblende may acquire up to an 80% interest in the Property by incurring an aggregate of $3,500,000 in exploration expenditures, paying a total of $425,000 and issuing an aggregate 250,000,000 Valor shares to Skyharbour as follows:
|Date||Cash Payments||Exploration Expenditures||Valor Shares Released from Escrow|
|On or before the first anniversary of Closing||$75,000||$750,000||50,000,000|
|On or before the second anniversary of Closing||$150,000||$1,000,000||50,000,000|
|On or before the third anniversary of Closing||$150,000||$1,750,000||50,000,000|
Pitchblende’s obligations to contribute the Project Consideration and complete the 80% earn-in is conditional on it choosing to proceed with the transaction following the expenditure of up to A$400,000 over the next 6-9 months for the purposes of satisfying a preliminary assessment and a portion of the first year exploration expenditures on the Property. In the event that Pitchblende elects not to proceed with the option after this period, the remainder of the Project Consideration will not be payable including the cash payments after years one through three and 150,000,000 of the Consideration Shares will be cancelled. The LOI will be formalised by a Definitive Agreement between Skyharbour, Pitchblende and Valor in due course.
The transaction is subject to various conditions precedent including Valor shareholder approval as well as ASX and regulatory approval.
Please read the complete news release at the following link: LINK