Mr. Chris Bakker reports
AVANTI HELIUM UNDERWAY WITH PRODUCTION DEVELOPMENT
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), Avanti Helium Corp. 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 chief executive officer. "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.
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 financing 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.
We seek Safe Harbor.
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