Denison Mines Corp. has entered into a $18 million agreement with Skyharbour Resources Ltd. to acquire initial ownership interests in the Russell Lake uranium project, which sits directly adjacent to Denison’s flagship Wheeler River property. The transaction gives Denison a 20 % stake in Russell Lake, 30 % in Getty East, 49 % in Wheeler North, and 70 % in Wheeler River Inliers, with earn‑in options that could lift its holdings in Wheeler North and Getty East to 70 % if performance targets are met.
The deal is structured with a $2 million upfront cash payment and $16 million in deferred payments, split into two $8 million tranches due before December 31 2025. Closing is expected by December 21 2025. The earn‑in mechanism allows Denison to increase its ownership in the most promising sub‑ventures, positioning it to lead future exploration and development activities in the Athabasca Basin.
Strategically, the transaction consolidates Denison’s presence around the Wheeler River corridor, giving it access to additional high‑grade uranium prospects and a larger contiguous land package. The move aligns with Denison’s plan to secure a near‑term supply of uranium for its Phoenix In‑Situ Recovery mine, which is awaiting final regulatory approvals. The deal also taps into the broader uranium market optimism, with analysts projecting prices to reach $90‑$100 per pound by mid‑2025 and potentially $135 per pound by 2026, driven by a global nuclear renaissance and supply constraints.
Operationally, Denison will become the operator of Wheeler North and Wheeler River Inliers, while Skyharbour will retain control of Russell Lake and Getty East. Denison will also gain priority access to Skyharbour’s existing exploration camp at Russell Lake, accelerating its exploration schedule. The earn‑in structure reflects a partnership model common to Skyharbour, which brings partners to fund exploration on its properties and then transfers ownership stakes as milestones are achieved.
Management emphasized the strategic fit of the deal. “As Denison nears receipt of final regulatory approvals for the Phoenix In‑Situ Recovery mine proposed for our flagship Wheeler River property, we are also making measured investments in our project pipeline – including our next development assets and high‑potential exploration properties,” said David Cates, President and CEO of Denison. “Given its proximity to Wheeler River, Denison has had an interest in adding Russell to our property portfolio for much of my nearly two decades with the Company.”
Headwinds remain, including a judicial review challenging the provincial environmental assessment approval for the Wheeler River project and ongoing regulatory scrutiny. However, the partnership provides a clear path to expand Denison’s exploration footprint while mitigating capital intensity through Skyharbour’s prospect‑generator model. The transaction is subject to customary approvals, including from the TSX Venture Exchange, and is classified as a reviewable transaction because Cates also serves on Skyharbour’s board.
In sum, the $18 million deal strengthens Denison’s strategic position in the Athabasca Basin, aligns with its near‑term development plans, and leverages Skyharbour’s exploration expertise to accelerate access to high‑grade uranium resources.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.