04:48 PM EST, 02/14/2025 (MT Newswires) -- Skyharbour Resources ( SYHBF ) said Friday afternoon that its partner, Terra Clean Energy, has started mobilizing crews and equipment for work at the South Falcon East uranium project, which contains the Fraser Lakes B uranium deposit.

The project is being developed under an option agreement with Skyharbour. If Terra earns a 75% interest, Terra will fund up to C$10.5 million in exploration and pay Skyharbour C$11.1 million in cash, of which C$6.5 million can be settled in Terra shares over the next five years.

Terra has begun a winter drilling program of up to 2,500 meters, led by Terralogic Exploration. The program will build on the 2024 work and focus on finding and characterizing this structural trap to test the model for a high-grade basement-hosted uranium deposit, the company said.

"We have a unique and exceptional exploration opportunity that includes continuing to expand the Fraser Lakes B Uranium Deposit which is open in all directions and at depth as well as pursuing high-grade basement hosted uranium deposits," Terra's Vice President of Exploration Trevor Perkins said.