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.