Avanti Helium Corp. secures offtake agreement

CALGARY — Avanti Helium Corp. announces the signing of a multi-year take-or-pay helium offtake agreement with a global supplier of industrial gases.

Avanti Helium Corp. says that the agreement marks a significant commercial milestone for them as it is moving towards helium production at its Sweetgrass Helium Recovery Unit (HRU) in Montana. Under the terms of the agreement, which reportedly includes a three-year initial term with renewal options, the buyer has committed to a minimum monthly volume representing approximately 33% of initial plant output and 25% of the production volume following the facility’s planned expansion.

Avanti says that both of its high-deliverability wells, WNG 11-22 and WNG 10-21, are fully piped to the edge of HRU site. The Company also says that it will be providing additional detailed operational announcements and regular project updates as it progresses toward full-scale commissioning and ramp-up.

Due to confidentiality provisions, the name of the counterparty and specific pricing terms remain undisclosed.

“The execution of this offtake agreement is a pivotal achievement for Avanti as we move toward production,” said Chris Bakker, CEO of Avanti Helium. “The helium market continues to evolve, driven by accelerating US demand and uncertainty in the global supply chain. This agreement validates the strategic importance of both our Sweetgrass asset and general focus on US assets, and elevates Avanti as a key player in the North American helium landscape. With helium prices rising and supply-demand fundamentals strengthening, we are extremely bullish on the future and excited to continue building long-term value for our shareholders.”

In a statement, the Company said it is also actively engaged in discussions with other potential offtake partners for remaining volumes.