CALGARY, AB, May 15, 2024 /CNW/ - Avanti Helium Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company") is pleased to announce that it has signed an exclusive helium marketing agreement with The Edelgas Group ("Edelgas").
The agreement between Edelgas and Avanti paves the way for the marketing and sale of Avanti's helium gas and/or liquid products. With an extensive network and decades of experience in the industrial, specialty, and rare gases sector, Edelgas is well-positioned to effectively promote and distribute Avanti's helium offerings.
Through this agreement, Avanti gains access to Edelgas' established network of end users, encompassing both short-term and long-term contracts. Leveraging their expertise, Edelgas excels in facilitating agreements tailored to meet the diverse needs of multiple end-user buyers. Their track record of successfully managing short and long-term contracts underscores their reliability and ability to deliver value to both Avanti and its customers. As the Company is targeting production in 2024, this collaboration marks a strategic alignment, poised to unlock new opportunities, and help drive growth for Avanti.
"Avanti is pleased to formalize our partnership with Edelgas, following several months of successful collaboration," stated Chris Bakker, CEO of Avanti. "The global helium market is very dynamic at the moment. While Helium Shortage 4.0 seems to be easing, concerns persist regarding supply security due to ongoing military disruptions in Ukraine and the Middle East, as well as potential EU trade sanctions on Russian helium. With Avanti's exceptional assets and competitive operating costs of approximately US$200/Mcf for liquefied helium and US$130/Mcf for crude gaseous helium, we anticipate strong profitability across a wide spectrum of offtake prices."
Cliff Cain, CEO of Edelgas, commented, "We are excited to collaborate with Avanti to develop this project, especially given the persistent helium shortages over the past decade. The Greater Knappen area has demonstrated top-tier flow rates in a proven helium-rich, low-risk jurisdiction. Ensuring a stable helium supply will catalyze growth in pivotal sectors like space exploration, semiconductor manufacturing, drone production, airships and quantum technology."
Avanti also announces that it will enter into agreements to settle amounts owing for services of approximately C$330,047 to certain arm's-length service providers of the Company, by issuing 1,118,085 common shares in the capital of the Company (the "Common Shares") at a deemed price of C$0.295 per Common Share, to the service providers. The Board of Directors has determined that it is in the best interests of the Company to settle amounts owing by the issuance of Common Shares to preserve the Company's cash for ongoing operations.
Closing of the transaction is subject to customary closing conditions, including the approval of the TSX Venture Exchange. The Company intends to close the transaction as soon as practicable. All Common Shares issued in connection with the transaction will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation in Canada.
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.
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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, including statements relating to the completion of the financing transaction described herein, including satisfaction of the conditions to closing, statements relating to the expectation that the Company will enter into helium purchase agreement in accordance with the terms of the offtake LOI, the expected use of proceeds from the financing transaction, the expectation that the Company will be able to complete the transactions herein and begin receiving cashflow from the Sweetgrass project in Q2, 2024, and the expected impacts to the Company's business that are disclosed herein which relate to the completion of these transactions. 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: the Company's ability to satisfy the closing conditions for the financing transaction, the Company negotiating and entering into the helium purchase agreement, on terms favorable to the Company, or at all, and timely completion of the infrastructure work, , 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.sedarplus.cafor 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.
