Preston Uranium Project Claims Map

Skyharbour Resources (SYH.V) has closed a previously unannounced placement to raise C$1.68M in a mix of hard dollars and flow-through dollars which will further boost the company’s cash and working capital position. 5.36M hard dollar units were issued at C$0.15 and 4.86M flow through units were issued at C$0.18 with each unit consisting of one common share and a full warrant with a strike price of C$0.22.

Skyharbour had a working capital position of around C$1.7M as of the end of December but has completed a 2,500 meter drill program at its 36,000 hectare Moore uranium project in Q1 the cash position has obviously decreased in the past four months, and we expect Skyharbour to have a working capital position of around C$2.5M as of right now (SYH should file its Q1 financial statements soon which will give us a definitive answer on the pre-raise cash position).

Issuing in excess of 10 million warrants sounds like it could be dilutive to the current fully diluted share count, but we would like to point out that 4.65M warrants at C$0.30 expired in March while an additional 1.53M warrants at C$0.40 will expire in June of this year. On top of that, just over 5M warrants with a strike price of C$0.60 will expire on August 2nd. So unless the Skyharbour share price doubles by the end of June and triples by August (which we wouldn’t mind), approximately 11.2M warrants will expire unexercised so even after adding 10.2M warrants at C$0.22 in the recent placement, the fully diluted share count will actually decrease by in excess of 1M shares by the end of August.

Disclosure: The author has a long position in Skyharbour Resources. Skyharbour is a sponsor of the website.

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