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.
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