Skyharbour Signs Letter of Intent with Pitchblende Energy to Option 80% of the North Falcon Point Uranium Property
Suite 1610 – 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
www.skyharbourltd.com
TSX-V Trading Symbol: SYH
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
October 22nd, 2020
NEWS RELEASE
Skyharbour Signs Letter of Intent with Pitchblende Energy to Option 80% of the North
Falcon Point Uranium Property
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:
https://skyharbourltd.com/_resources/maps/SYH-Athabasca-MapOct2020.pdf
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 partner s in
Pitchblende and Valor led by experienced and dynamic management and technical team s.
Furthermore, Skyharbour will maintain a 100% interest in the southern portion of the Falcon Point
Project retaining ownership of the Frasers Lake s Uranium and Thorium Depo sit. 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% U 3O8; 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; d iamond 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; t he 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 ; t he 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 are a 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 exten sive 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 surve ys,
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 a n 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 Closing $50,000 $0 100,000,000
On or before the first
anniversary of Closing
$75,000 $750,000 50,000,000
(totalling 150,000,000)
On or before the second
anniversary of Closing
$150,000 $1,000,000 50,000,000
(totalling 200,000,000)
On or before the third
anniversary of Closing
$150,000 $1,750,000 50,000,000
(totalling 250,000,000)
TOTAL $425,000 $3,500,000 250,000,000
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 Share s 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.
About Pitchblende Energy Pty Ltd:
Pitchblende is the subject of a binding terms sheet pursuant to which, subject to Valor shareholder
approval, it will become a wholly owned subsidiary of Valor.
About Valor Resources Ltd:
Valor Resources Limited (ASX: VAL) is an exploration company listed on the Australian Securities
Exchange focused on creating shareholder value through acquisitions and exploration activities.
The company is acquiring uranium projects in the Athabasca Basi n of Northern Saskatchewan,
Canada through the acquisition of Pitchblende Energy Pty Ltd which is subject to shareholder
approval.
George Bauk is the Executive Chairman of Valor and has over 30 years of experience within the
resource industry in both production and exploration with assets in Australia and internationally.
Mr. Bauk holds a Bachelor of Business (Accounting and Finance) from Edith Cowan University,
is a Fellow of the CPA and has an MBA from the University of New England. He has held global
operational and corporate roles with WMC Resources and Western Metals. Mr. Bauk has a strong
background in strategic management, business planning, capital raising, and has experience with
a variety of commodities. Mr. Bauk is a member of the WA resources industry having previously
held a number of senior governing positions with the Chamber of Minerals and Energy including
Vice President.
Mr. Bauk has overseen several uranium exploration projects in the US, Tanzania and Western
Australia, partnering with AREVA in Western Australia whilst being Managing Director of Northern
Uranium prior to transitioning to Northern Minerals. In 2006, Mr. Bauk was focu ssed on the
southern Tanzanian region which was the region known for the successful Mkuju River discovery
by Mantra Resources. During his time as Managing Director of Northern Minerals, he led its rapid
development from a greenfields heavy rare earth explorer to one of a few global producers of high
value dysprosium outside of China.
Gary Billingsley, a resident of Saskatoon, has also recently joined Valor as a non -Executive
Director and brings over 48 years of experience in the resource industry. Mr. Billingsley holds a
Bachelor of Science Advanced Degree in Geology from the University of Saskatchewan in
Canada. He also obtained his Chartered Accountant designation and currently also holds
designations as both a Professional Engineer and Professional Geoscientist. Mr. Billingsley has
held several operational and corporate roles from Chief Mine Geologist to President and CEO of
both small and large public companies. Besides a strong technical background, he has extensive
experience on the corporate and capital markets side of the industry. He has served on board
committees including Audit, Compensation, Corporate Governance and Environment, Health and
Safety committees. His public company experience covers commodities including oil and gas,
base metals, gold, diamonds, uranium, potash and rare earths.
Some highlights of Mr. Billingsley’s career include leading the team that put Saskatchewan’s
largest gold mine into production, still producing after 29 years; discovering several diamond -
bearing kimberlites in Saskatchewan, one of which has now completed final feasibility; playing a
major role in taking a junior potash company public, that was subsequently purchased by BHP;
and establishing one of the first companies to recognize the importance of developing rare earth
projects outside of China including downstream capacity.
Qualified Person:
The technical information in this news release has been prepared in accordance with the
Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and
approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Advisor and a
Director, as well as a Qualified Person.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's
Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals
with six drill -ready projects. Skyharbour has acquired from Denison Mines, a large strategic
shareholder of the Company, a 100% interest in the Moore Uranium Project which is located 15
kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur
River uranium mine. Moore is an advanced stage uranium exploration property with high grade
uranium mineralization at the Maverick Zone with drill results returning up to 6.0% U3O8 over 5.9
metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour has
signed option agreements with Orano Canada Inc. and Azincourt Energy whereby Ora no and
Azincourt can earn in up to 70% of the Preston Project through a combined $9,800,000 in total
exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares.
Preston is a large, geologically prospective property proximal to Fission Uranium's Triple R
deposit as well as NexGen Energy's Arrow deposit. The Company also owns a 100% interest in
the Falcon Point Uranium Project on the eastern perimeter of the Basin which contains a NI 43 -
101 inferred resource totaling 7.0 milli on pounds of U 3O8 at 0.03% and 5.3 million pounds of
ThO2 at 0.023%. The Company's 100% owned Mann Lake Uranium project on the east side of
the Basin is strategically located adjacent to the Mann Lake Joint Venture operated by Cameco,
where high -grade uran ium mineralization was recently discovered. Skyharbour's goal is to
maximize shareholder value through new mineral discoveries, committed long-term partnerships,
and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour’s Uranium Project Map in the Athabasca Basin:
http://skyharbourltd.com/_resources/maps/SYH-Athabasca-Map.pdf
To find out more about Skyharbour Resources Ltd. (TSX -V: SYH) visit the Company’s website
at www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
“Jordan Trimble”
Jordan Trimble
President and CEO
For further information contact myself or:
Spencer Coulter
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
RELEASE.
This release includes certain statements that may be deemed to be "forward -looking statements". All
statements in this release, other than statements of historical facts, that address events or developments
that management of the Company expects, are forward -looking statements. Although management
believes t he expectations expressed in such forward -looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance, and actual results or
developments may differ materially from those in the forward-looking statements. The Company undertakes
no obligation to update these forward -looking statements if management's beliefs, estimates or opinions,
or other factors, should change. Factors that could cause actual results to differ materially from those in
forward-looking s tatements, include market prices, exploration and development successes, continued
availability of capital and financing, and general economic, market or business conditions. Please see the
public filings of the Company at www.sedar.com for further information.