Skyharbour Signs Option Agreement with Black Shield Metals Corp to Option 75% of the Mann Lake Uranium Project
Suite 1610 –777Dunsmuir Street, Vancouver, BC, Canada, V7Y1K4
www.skyharbourltd.com
TSX-V Trading Symbol: SYH
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
October 18th, 2021
News Release
Skyharbour Signs Option Agreement with Black Shield Metals Corp to Option 75% of the
Mann Lake Uranium Project
Vancouver, BC - Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB: SYHBF) (Frankfurt:
SC1P) (“Skyharbour” or the “Company”) is pleased to announce that it has entered into an option
agreement (the “Option Agreement”) with Black Shield Metals Corp. (CSE: BDX) ( “Black Shield”)
which provides Black Shield an earn -in option to acquire up to a 75% interest (the “Option”) in the
Mann Lake Uranium Project (“Mann Lake” or the “Property”) located in the Athabasca Basin,
Northern Saskatchewan, Canada.
Mann Lake Project Location Map:
https://skyharbourltd.com/_resources/SYH_Mann_Lake_Tenure.jpg
Under the Option Agreement, Black Shield will contribute cash and exploration expenditure
consideration totaling CAD $ 4,850,000 over a three -year period (“Project Consideration”). Of the
Project Consideration, $850,000 will be in cash payments to Skyharbour and $4,000,000 will be in
exploration expenditures on the project . Black Shield will also issue to Skyharbour the equivalent
value of CAD $1,750,000 in shares of the company over the three-year earn-in period to complete
the earn-in.
Skyharbour’s President and CEO, Jordan Trimble commented: “We are excited to have this Option
Agreement signed as we continue to execute on our business model by adding value to our project
base in the Athabasca Basin through strategic partnerships and prospect generation, as well as
focused mineral exploration at our flagship Moore Uranium Project. We are looking forward to
working with Black Shield and its management team as they advance the Mann Lake Project over
the coming years. News will be forthcoming on exploration plans as we continue to see an upward
momentum in the uranium market.”
Mann Lake Uranium Project Summary:
Skyharbour owns a 100% interest in the 3,473 hectare (8,582 acre) Mann Lake Uranium Project
located in the eastern Athabasca Basin in northern Saskatchewan. It is strategically located 25 km
southwest of the McArthur River Mine, the largest high -grade uranium deposit in the world, and 15
km to the northeast of Cameco's Millennium uranium deposit. The Mann Lake project is also
adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%) with partners Denison
Mines (30%) and Orano (17.5%).Denison Mines acquired International Enexco and its 30%
interest in the project after a 2014 winter drill program discovered high -grade, basement-hosted
uranium mineralization at this adjacent project.
Skyharbour carried out a ground-based EM survey in 2014 focused on an area where a 2 km long
aeromagnetic low coincide d with basement conductor s interpreted from earlier EM surveys. Th is
program successfully confirmed the presence of a broad, NE -SW trending corridor of conductive
basement rocks which are likely graphitic metapelites.
Mann Lake Project Geological Compilation Map:
https://skyharbourltd.com/_resources/SYH_Mann_Lake_Compilation.jpg
The Mann Lake Uranium Project has seen over $3 million of previous exploration expenditures
consisting of geophysical surveys and two diamond drill programs totaling 5,400 metres carried out
by Triex in 2006 and 2008. The geophysical surveys identified graphitic basement conductors and
structural corridors containing reactivated basement faults. These features trend onto the adjacent
ground operated by Cameco. The 2006 diamond drill program intersected a 4.5 metre wide zone
containing anomalous boron (with highlight values of up to 1 ,758 ppm B) in the sandstone
immediately above the unconformity in drillhole MN06-005. Boron enrichment is common at the
McArthur River uranium mine, and along w ith illite and chlorite alteration, is a key pathfinder
element for uranium deposits in the Athabasca Basin. In the same drill hole, altered basement
gneissic rock s with abundant clay, chlorite, hematite and calc -silicate minerals w ere intersected
about 7.6 metres below the unconformity and contained anomalous uranium, including up to 73.6
ppm over a 1.5 metre interval. Background uranium values are commonly between 1 and 5 ppm.
Terms of the Option Agreement:
Under the terms of the Option Agreement, the Black Shield Metals Corp. is committed to the
following:
1. paying to Skyharbour a total of CAD $850,000 cash and issuing Skyharbour the total
number of common shares (“ Shares”) of Black Shield equivalent to a val ue of CAD
$1,750,000 based on the 20 day VWAP at the time of issuance, as follows:
a. within five days of the signing of the Option Agreement, pay $100,000 and issue
Shares equivalent to $250,000 at the 20 day VWAP at the time of issuance;
b. on the first anniversary of the signing of the Option Agreement, pay $250,000 and
issue Shares equivalent to $500,000 at the 20 day VWAP at the time of issuance;
c. on the second anniversary of the signing of the Option Agreement, pay $250,000
and issue Shares equivalent to $500,000 at the 20 day VWAP at the time of
issuance;
d. on the third anniversary of the signing of the Option Agreement, pay $250,000 and
issue Shares equivalent to $500,000 at the 20 day VWAP at the time of issuance;
2. incur a minimum of $4,000,000 in exploration expenditures on the Property as follows:
a. $1,000,000 in exploration expenditures on or before the first anniversary of the
signing of the Option Agreement;
b. an additional $1,000,000 in exploration expenditures on or before the second
anniversary of the signing of the Option Agreement; and
c. an additional $2,000,000 in exploration expenditures on or before the third
anniversary of the signing of the Option Agreement.
In the event that Black Shield spends, in any of the above periods, less than the specified sum, it
may pay to the Optionor the difference between the amount it actually spent and the specified sum
before the expiry of that period in full satisfaction of the exploration expenditures to be incurred. In
the event that Black Shield spends, in any period, more than the specified sum, the excess shall be
carried forward and applied to the exploration expenditures to be incurred in succeeding periods.
Immediately on Black Shield satisfying all of the conditions, Black Shield will be deemed to have
exercised the Option and to have earned a 75% interest in and to the Property which will vest to
Black Shield subject to the net smelter returns royalty (“ NSR Royalty”). A NSR Royalty of two and
a half percent (2.5%) is payable to a third party of n et smelter returns from minerals mined and
removed from the Property (payable pro-rata based on ownership interest in the Property).
The issuance of the Black Shield shares is subject to approval by the board of directors of Black
Shield and the Canadian Securities Exchange. All securities issued pursuant to this offering will be
subject to a four -month plus one -day hold period from the issuance date. Black Shield may pay
finder's fees and/or commissions to eligible persons in connection with the Option in accordance
with applicable securities laws and the policies of the Canadian Securities Exchange.
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 Black Shield Metals Corp.
Black Shield Metals Corp. is a Canadian junior exploration company focused on diversified mineral
resources. Black Shield is proposing to change its name to Basin Uranium Corp. and its trading
symbol, and will provide additional updates when approval has been received.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium exploration projects in Canada's Athabasca
Basin and is well positioned to benefit from improving uranium market fundamentals with six drill -
ready projects covering over 2 50,000 hectares of land. Skyharbour has acquired from Denison
Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium
Project which is loca ted 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 that returned dri ll results of
up to 6.0% U 3O8 over 5.9 metres including 20.8% U 3O8 over 1.5 metres at a vertical depth of 265
metres. The Company is actively advancing the project through drill programs.
Skyharbour has a joint -venture with industry -leader Orano Canada In c. at the Preston Project
whereby Orano has earned a 51% interest in the project through exploration expenditures and
cash payments. Skyharbour now owns a 24.5% interest in the Project. Skyharbour also has a joint-
venture with Azincourt Energy at the East Preston Project whereby Azincourt has earned a 70%
interest in the project through exploration expenditures, cash payments and share issuance.
Skyharbour now owns a 15% interest in the Project. Preston and East Preston are large,
geologically prospective p roperties 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 South Falcon Point Uranium Project on the eastern
perimeter of the Basin, which contains a NI 43 -101 inferred resource totaling 7.0 million pounds of
U3O8 at 0.03% and 5.3 million pounds of ThO 2 at 0.023%. Skyharbour has signed a Definitive
Agreement with ASX -listed Valor Resources on the Hook Lake (previously North Falcon Point)
Uranium Project whereby Valor can e arn-in 80% of the project through $3,500,000 in total
exploration expenditures, $475,000 in total cash payments over three years and an initial share
issuance.
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.jpg
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:
Riley Trimble
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 REL EASE.
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, ar e forward-looking statements. Although management believes the
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 d iffer
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 statements,
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.