Avanti Helium Signs Agreement For Existing U.S.-Based Helium Processing Plant to Accelerate Sweetgrass Production Timeline
Under the MOU, the parties have agreed to advance definitive documentation for the relocation, installation, commissioning, and operation of the plant, which is currently located in
Key Highlights
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Existing, Operational Plant
The helium plant is already constructed and operationally proven, significantly reducing execution risk and shortening Avanti's path to first production. Notably, the plant has approximately three months of runtime to date making it practically new but available quickly. -
Rapid Deployment to
Sweetgrass
The plant will be relocated from its currentU.S. location and installed at Avanti'sSweetgrass site, where leased land, road access, and pipeline connections are already in place. -
Target Capacity and Performance
The facility is designed for ~10 MMcf/d inlet capacity , with targeted availability of ~95% uptime, Helium purity of >98% is expected, with potential upgrades enabling 99.999% ultra-high purity production. The Facility design also has the ability to increase inlet capacity to ~15 MMcf/day. -
Avanti-Operated, Capital-Efficient Structure
Avanti will operate both the wells and the plant, maintaining full control of operations, production data, and commercialization, while leveraging on-going specialized technical support from the technology provider. -
Lease with Long-Term Optionality with Maintenance Provision
The proposed commercial framework includes a multi-year lease term, with options to renew, and a purchase option, preserving long-term strategic flexibility and upside. This arrangement allows Avanti to pay a fixed monthly fee for the plant rather than financing significant upfront capital costs. The MOU also includes a paid provision for on-going maintenance, including replacement hardware, and support. Given the experience of the provider, this will greatly assist Avanti operations with runtime, helium recovery and optimization for a predictable cost.
Fast-Tracking Production in 2026
The
"This is a major step forward for Avanti," said
The parties are now advancing toward definitive agreements, including final engineering scope, commercial terms, and a detailed relocation and commissioning schedule. Avanti will provide further updates as milestones are achieved. As the terms of this MOU are far more superior for Avanti Shareholders the Company will no longer be pursuing the term sheet announced
About
Avanti is focused on the exploration, development, and production of helium across western
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.
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