CALGARY,
AB, Oct. 17, 2023 /CNW/ - Avanti
Helium Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the
"Company") is pleased to provide an update of the ongoing
development of the Sweetgrass pool project in Greater Knappen
Montana.
The Company is pleased to announce that ancillary construction
related to the Helium Recovery Unit (HRU) site has been progressing
well, both on time and on budget. Specifically, three miles of
pipeline work to connect the WNG 11-22 and WNG 10-21 wells to the
HRU site commenced on September
18th. 100% of the pipe has been welded, and 30%
ditching has been completed. The remaining pipeline construction is
expected to be completed by the end of October. The Company has
also begun procuring and fabricating the well site skids and inlet
separation facility. The project is on track and targeted to be
completed and ready for helium production in late Q1 / early Q2
2024.
Avanti also advises that it has signed a non-binding Letter of
Intent (LOI) to enter into a helium purchase and sale agreement
with a creditworthy party that it expects to lead to an offtake
agreement for 80-100% of the production of its Sweetgrass helium
production. The Company is working toward a finalized offtake
agreement, at which point the Company can provide detailed cash
flow projections from the Sweetgrass pool for 2024 & 2025.
"With cashflow coming into sight Avanti's team is steadily
advancing toward first production in Greater Knappen" commented
Chris Bakker, Avanti CEO. "The
pieces are falling into place at a time when access to safe and
secure helium supplies remains top of mind for many
buyers. Avanti's jurisdictional and regional advantages make
it stand out in a global industry facing tight supplies and rising
geopolitical risk."
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.
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, 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 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.