Denison Mines (DNN) said Monday that it signed an agreement to acquire initial interests in claims comprising Skyharbour Resources' Russell Lake uranium project in Canada for a total of 18 million Canadian dollars ($12.8 million).

The payment includes CA$2 million in cash, payable upon the deal's execution, and a deferred consideration of $16 million, payable in cash or common shares, Denison Mines said.

Under the deal, the Russell property will be divided into four property joint ventures, with Denison Mines to acquire initial stakes of 20% in Russell Lake, 30% in Getty East, 49% in Wheeler North, and 70% in Wheeler River Inliers, according to the statement.

Denison Mines said it also agreed to sign option agreements with Skyharbour to increase its stakes in each of the Wheeler North and Getty East joint ventures to up to 70%. The company said the transaction remains subject to regulatory approvals.