Helium Evolution Incorporated (TSXV: HEVI)
("HEVI", “Helium Evolution” or the "Company"), a Canadian-based
helium exploration and production company focused on developing
assets in southern Saskatchewan, is pleased to provide a corporate
update for shareholders regarding the achievement of key milestones
towards our goal of generating long-term cash flow and shareholder
returns. One such milestone in this journey was providing liquidity
for our shareholders, which was realized on March 30, 2022 with our
listing on the TSX-V. In addition to having
approximately $10 million in cash, our listing supports ongoing
efforts to start generating revenue from the production and sale of
helium, which is targeted to commence in the first quarter of 2023.
Since founding the Company in 2021, management
and the board of directors have shared the overall vision of
becoming a leading North American helium exploration and production
company focused in the Saskatchewan helium fairway. HEVI recognized
early on that amassing a sizeable land position in the province
would be instrumental and have successfully acquired 5.48 million
acres of helium exploration permits in Saskatchewan. This positions
HEVI as the largest holder of helium exploration rights in North
America among publicly listed helium companies. On that land, we
have now purchased and shot over 750 km of 2D seismic which has
been fundamental to identifying numerous drilling targets in the
Mankota/McCord area of south-central Saskatchewan.
Mankota/McCord the Initial
Focus
Based on advanced geological and seismic
analysis, HEVI sees multiple potential helium anomalies at the
Mankota/McCord area. A large private helium producer recently made
a discovery of helium in the Mankota area adjacent to HEVI’s land,
drilling five wells into the new pool and licencing one additional
well. Based on our technical analysis and seismic mapping, this
discovery appears to extend onto HEVI’s adjacent Mankota lands.
Helium’s scarcity has recently caused it to be
classified as a critical mineral to many leading countries1,
leading to escalating prices. Although helium lacks a transparent
trading market that can provide visibility on pricing, recent
transactions by industry peers indicate wholesale helium pricing in
the US$600 per mcf range and retail prices in the US$2000 per mcf
range2, levels which support HEVI’s robust economic and financial
modeling.
The Mankota pool has demonstrated helium
concentrations of 1.08%3, and a nitrogen-rich reserve. The
production of nitrogen is significant as nitrogen is an
environmentally friendly carrier gas that is beneficial to the
environment, making helium extraction a greener energy source than
conventional natural gas. HEVI has also identified a strategy for
modular-based processing, production and offtake once production
comes on stream.
HEVI’s first three drilling locations at
Mankota/McCord have been surveyed and we are now in the process of
acquiring surface leases and drilling licenses. With a rig supplied
by Savannah Drilling, the Company’s drilling program will commence
with the spudding of our first exploration well in early June, once
surface conditions are suitable. We have contracted a drilling rig
for up to four wells and secured the required production casing,
which helps mitigate risk due to supply chain issues. Three
additional drilling targets are in the surveying stage, which HEVI
can elect to drill immediately following the first three, based on
success.
As part of our longer-term program, HEVI’s
technical team is evaluating several other large prospect areas
across our extensive land base, with the Company planning on
shooting new 2D seismic and purchasing additional seismic trade
data throughout the year. To further advance our prospects and
prepare for additional drilling in late 2022 and into 2023, HEVI
plans to establish a continuous cycle of shooting seismic, drilling
and producing. This practice of acquiring seismic during the
coldest months of the year, and drilling during the milder seasons
is more cost effective and designed to position HEVI with steady
production while protecting the safety and integrity of our
operational crews and equipment.
"We are extremely proud of the progress HEVI has
made in the short time since our inception, particularly having
secured such a significant land base, assembled a top-notch
technical team, and formulated a robust strategy designed to enable
HEVI to meet or exceed expectations," said Greg Robb, President
& CEO. “With the Saskatchewan government’s public vision to
secure 10% of the global helium market share by 2030 through its
Helium Action Plan, Helium Evolution is operating in a supportive,
regulatory-friendly jurisdiction that helps set us up for long-term
growth.”
Strong Corporate Governance and Market
Engagement
The HEVI management team and board of directors
is comprised of a seasoned group of individuals who each bring
unique and valued experience to the organization. Our well-rounded
management team brings proven acumen in engineering, geology, land
acquisition and shareholder value creation with a commitment to
conservative execution and contingency planning. President and CEO
Greg Robb, is joined by John Kanderka, VP Land and Corporate
Development; Pat Mills, COO; and Ryan Tomlinson, CFO. The Company’s
board of directors includes James Baker, Chair; Brad Wall,
Independent Director; Mike Graham, Independent Director; Philip
Hughes, Independent Director; Jeff Barber, Director and
recently-appointed Heather Isidoro, Independent Director.
Shareholders and other parties interested in
learning more about the Helium Evolution opportunity are encouraged
to read an extensive, ‘deep-dive’ research report commissioned by
Helium Evolution and prepared by a third party whose background
includes serving as a research analyst for several bank-owned and
independent investment dealers. In addition, HEVI is profiled on
the Investing News Network platform, where further information,
editorial pieces and industry reviews are available and has been
featured in recent news media articles. Additional information is
available on the Company’s website, including a current corporate
presentation, and we encourage you to follow the Company on
LinkedIn and Twitter for ongoing corporate updates and helium
industry information.
About Helium Evolution
Incorporated
Helium Evolution is a Canadian-based helium
exploration and production company holding the largest helium land
rights position in North America among publicly-traded companies,
focused on developing assets in southern Saskatchewan. The Company
has over five million acres of land under permit near proven
discoveries of economic helium concentrations which will support
scaling the exploration and development efforts across its land
base. HEVI’s management and board are executing a differentiated
strategy to become a leading supplier of sustainably-produced
helium for the growing global helium market, offering a compelling
opportunity for investors.
For further information, please
contact:
Greg Robb, President & CEORyan Tomlinson, CFO |
Phone: 1-587-330-2459 Email: info@heliumevolution.caWeb:
https://www.heliumevolution.ca/ |
|
|
Cindy Gray, Investor
Relations |
info@5qir.com |
403-705-5076 |
Statement Regarding Forward-Looking
Information
This news release contains statements that
constitute "forward-looking statements." Such forward looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements,
or developments in the industry to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document
include statements regarding the Company's expectations regarding
the commencement of drilling by the Company, timing of production
and cash flows, market pricing for helium, increasing shareholder
value and other statements that are not historical facts. By
their nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors and risks include, among others: the
Company may choose to defer, accelerate or abandon its drilling
plans; new laws or regulations and/or unforeseen events could
adversely affect the Company’s business and results of operations;
stock markets have experienced volatility that often has been
unrelated to the performance of companies and such volatility may
adversely affect the price of the Company's securities regardless
of its operating performance risks generally associated with the
exploration for and production of resources, including the ability
of the Company to construct the necessary facilities to move its
products to markets; the uncertainty of estimates and projections
relating to expenses; constraint in the availability of services;
commodity price and exchange rate fluctuations; the current
COVID-19 pandemic; adverse weather or break-up conditions; and
uncertainties resulting from potential delays or changes in plans
with respect to exploration or development projects or capital
expenditures.
When relying on forward-looking statements and
information to make decisions, investors and others should
carefully consider the foregoing factors and risks and other
uncertainties and potential events. The Company has assumed
that the material factors referred to in the previous paragraphs
will not cause such forward-looking statements and information to
differ materially from actual results or events. However, the
list of these factors is not exhaustive and is subject to change
and there can be no assurance that such assumptions will reflect
the actual outcome of such items or factors. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this press release are made
as of the date of this press release. The Company does not intend,
and expressly disclaims any intention or obligation to, update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
law.
This press release is not for distribution to
U.S. news services or for dissemination in the United States. This
press release does not constitute an offer to sell, or a
solicitation of an offer to buy, any securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
__________________1 Critical Minerals; Government of Canada;
March 2021.2
https://www.bloomberg.com/press-releases/2022-04-13/avanti-energy-confirms-major-helium-discovery.3
Helium in Southwestern Saskatchewan Accumulation and Geological
Setting, Melinda M. Yukowski; 2016.
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