AVANTI HELIUM UNDERWAY WITH PRODUCTION DEVELOPMENT
CALGARY, AB, July 28, 2023 /CNW/ - Avanti Helium Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company") is pleased to report that following the announcement of the agreement for third-party construction and ownership of the Helium Recovery Unit (HRU) to produce the Sweetgrass discovery (please see press release dated July 27, 2023), the Company is now able to aggressively move forward to achieve its commercial production.
"As the major pieces are being put in place for Avanti to becoming a helium producer, we look forward to helium offtake contracts and generating cash flows," commented Chris Bakker, Avanti CEO. "In securing the HRU, Avanti will be able to deliver on its commitments to offtake customers."
Offtake Agreements
The Company is engaged in discussions with several potential liquid helium offtake customers, both domestic and foreign. The geopolitical tensions that exacerbated "Helium Shortage 4.0" remain a concern for buyers and demand for helium sourced from secure jurisdictions remains high.1
Surface Lease and Easements
Avanti has taken the necessary steps and confirms the 40-acre surface lease for the HRU and pipeline easements to connect the Sweetgrass wells to the facility are in-place.
Financial Flexibility
The HRU solution also moves forward Avanti's discussions for non-dilutive financing options. Managing dilution and providing best value for existing shareholders remains the primary focus for management. Avanti is in discussions with multiple parties regarding possible royalty funding arrangements as well as possible debt instruments. Moving closer to cash flow via the HRU and offtake discussions greatly improves the Company's ability to negotiate an attractive arrangement.
About Avanti Helium Corp
Avanti Helium is focused on the exploration, development, and production of helium across western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting helium trapped in structures to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries. For more information, please go to the Company's website at www.avantihelium.com.
1 Source: Online, https://www.gasworld.com/story/helium-shortage-4-0-continuing-uncertainty-in-the-market/
Forward-Looking Statements
The information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: statements relating to the expected timing for the development of the helium recovery plant and timing estimates with respect to initial production therefrom, statements relating to the expected benefits to Avanti from the midstream agreement and liquefaction tolling agreement, statements relating to obtaining financing to fund associated infrastructure work for the plant, risks associated with helium exploration, development, production, marketing and transportation, volatility in helium prices, risks relating to the Company's ability to access sufficient capital from production and external sources, risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information. Please see the public filings of the Company at www.sedar.com for further information and risks applicable to the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Avanti Helium Corp.
View original content: http://www.newswire.ca/en/releases/archive/July2023/28/c3539.html
