CALGARY,
AB, Nov. 30, 2023 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce it has closed its previously announced
non-brokered private placement (the "Offering") of units ("Units")
of the Company by issuing 4,686,500 Units at a price of
$0.40 per Unit for aggregate gross
proceeds of $1,874,600. Each Unit is
comprised of one (1) common share of the Company (a "Share") and
one (1) Share purchase warrant (a "Warrant"), with each Warrant
entitling the holder to purchase one (1) additional Share (a
"Warrant Share") at an exercise price of $0.60 per Warrant Share until November 30, 2025.
In connection with the Offering, the Company paid an aggregate
of $129,822 and issued an aggregate
of 324,555 Share purchase warrants ("Finder's Warrants") in
finder's fees. Each Finder's Warrant is exercisable to acquire one
(1) Share (a "Finder's Warrant Share") at an exercise price of
$0.40 per Finder's Warrant Share
until November 30, 2025.
All securities issued under and in connection with the Offering
are subject to a statutory hold period expiring on March 31, 2024, in accordance with applicable
securities laws and the policies of the TSX Venture Exchange.
An insider of the Company (the "Insider") subscribed for a total
of 50,000 Units for gross proceeds of $20,000. The issuance of 50,000 Units to the
Insider is considered a related party transaction subject to
Multilateral Instrument 61-101 – Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The Company
intends to rely on exemptions from the formal valuation and
minority shareholder approval requirements provided under sections
5.5(a) and 5.7(a) of MI 61-101 on the basis that the participation
in the Offering by the Insider will not exceed 25% of the fair
market value of the Company's market capitalization.
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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
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. 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.sedparplus.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.