CALGARY,
AB, Sept. 11, 2023 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce that it has closed the second tranche (the
"Second Tranche") of its non-brokered private placement (the
"Offering"). The Company issued 150,000 units (the "Units")
at a price of $0.60 per Unit for
gross proceeds of $90,000.
Together with the first tranche closing on August 31, 2023, the Company has raised a gross
total of $1,000,219.80 under the
Offering, which is now closed.
Each Unit is comprised of one (1) common share (a "Share") of
the Company and one (1) Share purchase warrant (a "Warrant").
Each Warrant shall entitle the holder to acquire one (1)
additional Share (a "Warrant Share") at an exercise price of
$0.70 per Warrant Share for a period
of twelve (12) months after the date of issuance.
In connection with the Second Tranche, the Company paid and
issued an aggregate of $9,000 and
15,000 Share purchase warrants in finder's fees (a "Finder's
Warrant"). Each Finder's Warrant is exercisable to acquire one (1)
Share (a "Finder's Warrant Share") at an exercise price of
$0.70 per Finder's Warrant Share for
a period of twelve (12) months after the date of
issuance.
All securities issued pursuant to or in connection with the
Second Tranche closing are subject to a statutory hold period
expiring on January 12, 2024, in
accordance with applicable securities laws and policies of the TSX
Venture Exchange (the "Exchange").
The net proceeds of the Offering will be used for various work
related to the Company's Helium Recovery Plant located on the
Sweetgrass Pool in Montana and for
general working capital purposes.
Following the Company's announcement of the agreement for
third-party construction and ownership of the helium recovery unit
("HRU") to produce the Sweetgrass
discovery (please see the Company's press release dated
July 27, 2023), Avanti is now able to
aggressively move forward to achieve its commercial production.
The HRU solution also moves forward Avanti's discussions for
non-dilutive financing options. Managing dilution and providing the
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 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.
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.sedarplus.ca 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.