Avanti Helium Corp. signs marketing agreement with The Edelgas Group
by CM Staff
Through this agreement, Avanti gains access to Edelgas' network of end users, encompassing both short-term and long-term contracts.
CALGARY — Avanti Helium Corp. announces that it has signed an exclusive helium marketing agreement with The Edelgas Group.
The agreement between Edelgas and Avanti paves the way for the marketing and sale of Avanti’s helium gas and/or liquid products. With experience in the industrial, specialty, and rare gases sector, Edelgas feels they are well-positioned to effectively promote and distribute Avanti’s helium offerings.
Through this agreement, Avanti gains access to Edelgas’ network of end users, encompassing both short-term and long-term contracts. Leveraging their background, Edelgas excels in facilitating agreements tailored to meet the diverse needs of multiple end-user buyers. Their track record of successfully managing short and long-term contracts underscores their reliability and ability to deliver value to both Avanti and its customers. As the Company is targeting production in 2024, this collaboration marks a strategic alignment.
“Avanti is pleased to formalize our partnership with Edelgas, following several months of successful collaboration,” stated Chris Bakker, CEO of Avanti. “The global helium market is very dynamic at the moment. While Helium Shortage 4.0 seems to be easing, concerns persist regarding supply security due to ongoing military disruptions in Ukraine and the Middle East, as well as potential EU trade sanctions on Russian helium. With Avanti’s exceptional assets and competitive operating costs of approximately US$200/Mcf for liquefied helium and US$130/Mcf for crude gaseous helium, we anticipate strong profitability across a wide spectrum of offtake prices.”
Cliff Cain, CEO of Edelgas, commented, “We are excited to collaborate with Avanti to develop this project, especially given the persistent helium shortages over the past decade. The Greater Knappen area has demonstrated top-tier flow rates in a proven helium-rich, low-risk jurisdiction. Ensuring a stable helium supply will catalyze growth in pivotal sectors like space exploration, semiconductor manufacturing, drone production, airships and quantum technology.”
Avanti also announces that it will enter into agreements to settle amounts owing for services of approximately C$330,047 to certain arm’s-length service providers of the Company, by issuing 1,118,085 common shares in the capital of the Company at a deemed price of C$0.295 per Common Share, to the service providers. The Board of Directors has determined that it is in the best interests of the Company to settle amounts owing by the issuance of Common Shares to preserve the Company’s cash for ongoing operations.
