Helium Evolution Incorporated (TSXV:HEVI)
("
HEVI" or the "
Company"), a
Canadian-based helium exploration and production company focused on
developing assets in southern Saskatchewan, today announced the
filing of our audited financial results for the three-month period
ended March 31, 2022.
For complete details of the consolidated
financial statements and the associated management’s discussion and
analysis (“MD&A”), please refer to the Company’s filing on
SEDAR (www.sedar.com).
HEVI Q1 2022 Highlights:
|
Three months ended March 31, |
Tabular amounts in thousands of Canadian Dollars, except share and
per share amounts |
|
2022 |
|
|
2021 |
|
Financial |
|
|
Net
loss |
$ |
(1,654) |
|
$ |
(720) |
|
Net loss per share, basic and diluted |
|
(0.04) |
|
|
(0.05) |
|
Cash |
|
10,119 |
|
|
45 |
|
Working
capital |
|
9,918 |
|
|
15 |
|
Total
assets |
|
12,038 |
|
|
60 |
|
Total
liabilities |
$ |
497 |
|
$ |
- |
|
Weighted average shares outstanding |
|
|
Basic and diluted1 |
|
41,609,979 |
|
|
15,081,300 |
|
1The weighted average number of common shares
outstanding is not increased for outstanding stock options and
warrants when the effect is anti-dilutive.
On March 16, 2022, Helium Evolution concluded
our transaction with Duckhorn Ventures Ltd. ("Duckhorn") which
resulted in a reverse takeover of Duckhorn by the shareholders of
HEVI, enabling our shares to commence trading on the TSX Venture
Exchange on Wednesday, March 30, 2022. As at the end of the
quarter, we had 78,738,474 common shares issued and outstanding on
an undiluted basis, of which 15,950,094 (representing 20.3% on an
undiluted basis) are held by our senior executive and our board of
directors.
The Company’s first quarter 2022 activities were
largely focused on concluding our reverse takeover transaction and
undertaking the required preparations for a public listing. From an
operational perspective, capital expenditures through the first
three months of 2022 totaled $946,000, largely directed to ongoing
evaluation and assessment of prospects on existing helium permits
during the quarter.
The Company continued to evaluate prospects on
existing helium permits during the quarter, leveraging the 750 km
of 2D seismic that HEVI has purchased and shot since inception.
This led to the identification of numerous drilling targets in the
Mankota/McCord area of south-central Saskatchewan, which will be
the Company’s first core area. HEVI retains considerable
flexibility in managing capital given the long tenure of helium
permits granted by the Government of Saskatchewan, as commitments
related to the lease and permit terms are incorporated into the
capital budget.
The Company acquired additional helium permits
in Saskatchewan during Q1 2022, increasing our land position to
approximately 5.5 million acres. HEVI is positioned as the largest
holder of helium exploration rights in North America among publicly
listed helium companies.
Key milestones achieved
year-to-date:
-
Established 2022 drilling program: Continued to
accelerate HEVI’s drive towards commercialization with the
identification of up to six drilling targets for our initial
drilling program commencing in mid-2022.
-
Identification of new drilling targets: A further
10-12 potential targets were identified through interpretation of
seismic, which can be pursued once commercialization is
achieved.
-
Expanded land position: Increased helium permits
acquired to 5.5 million acres under an initial three-year term with
the Government of Saskatchewan. Helium permit terms can be extended
to more than 20-years at the option of the Company, provided
certain minimum expenditures and lease rental payments occur.
-
Secured extensive seismic database: Purchased
existing and shot new 2D seismic lines, and undertook seismic
reprocessing and interpretation, along with well log integration,
to refine the geological model used to select our initial six
drilling targets.
-
Provided shareholder liquidity: Listed on the TSXV
on March 30, 2022, providing liquidity options for shareholders as
well as enhancing HEVI’s visibility to new potential investors,
partners and off-takers.
-
Strengthened the board: Added Heather Isidoro to
the board of directors, who brings extensive technical and business
development experience as we initiate our 2022 drill program.
Outlook
We are extremely proud of the success our team
has realized to date in 2022, and excited about commencing our
drill program in the first half of June. Looking ahead to the
second quarter of 2022, we have contracted a drilling rig for up to
four wells and have secured the required production casing, which
helps mitigate risk due to supply chain issues.
As we execute on our drilling program, we will
continue to provide shareholders with updates on results, capital
expenditure plans and expectations for securing processing
facilities and off-take agreements that can support our
commercialization over the near and longer-term. Based on an
initial spud date of mid-June, we anticipate being able to share
preliminary results on the well by the middle to end of July and
keep our shareholders apprised of continued operational
advancements.
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 and timing of results
therefrom, increasing shareholder value, the provision of
operational updates to shareholders 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;
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.
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