CALGARY,
AB, Aug. 21, 2023 /CNW/ - Avanti
Helium Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the
"Company") is pleased to announce a non-brokered private placement
financing of up to 1,666,667 units at a price of $0.60 per Unit, for total proceeds of up to
$1,000,000 (the
"Offering").
Each Unit under the Offering will consist of one
common share and one share purchase warrant (each a "Warrant"),
with each Warrant entitling the holder to purchase one additional
share at a price of $0.70 per share
for a period of one year from the date of issue. The Company may
pay a finder's fee in cash and/or warrants under the
Offering.
Certain directors and officers of the Company are
expected to participate in the private placement. Such
participation would be considered to be a "related party
transaction" as defined under Multilateral Instrument 61-101
("MI 61-101"). The Offering will be exempt from the formal
valuation and minority shareholder approval requirements of MI
61-101.
The proceeds of the Offering will be used for
various work related to the Company's Helium Recovery Plant located
on the Sweetgrass Pool in Montana,
and for general working capital. All securities issued under the
Offering, including securities issuable on the exercise
thereof, are subject to a hold period expiring four months and one
day from the date of issuance.
Following the announcement of the agreement for
third party construction and ownership of the helium recovery unit
(HRU) to produce the Sweetgrass
discovery (please see press release dated July 27, 2023), Avanti Helium Corp. is now able
to aggressively move forward to achieve its commercial
production.
The HRU solution also moves forward Avanti's
discussions for non-dilutive financing options. Managing dilution
and providing best value for existing shareholders remains the
primary focus for management. Avanti is in discussions with
multiple parties regarding possible royalty financing arrangements
as well as possible debt instruments. Moving closer to cash flow
via the HRU and offtake discussions greatly improves the company's
ability to negotiate an attractive arrangement.
The Offering is subject to the acceptance of the
TSX Venture Exchange.
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.
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.sedar.com for further information
and risks applicable to the Company.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Avanti Helium Corp.