Skye Resources Inc. (SKR.T) has retained Morgan Stanley & Co. as the lead arranger for all financing relating to the development of Skye's Fenix ferro-nickel project in Guatemala.

Skye, Vancouver, said it and Morgan Stanley are advancing the debt financing arrangements for the project, with the objective of having the project fully funded in early 2008. Morgan Stanley also will work closely with Skye's other financial advisers, TD Securities Inc. and Cutfield Freeman & Co. There is no assurance that the exploration of financing alternatives will result in a transaction.