Avanti Helium signs deal for helium processing plant

Executive Summary

• Avanti Helium Corp. executed a definitive agreement to relocate, install, and commission an existing, operational helium processing plant at its Sweetgrass project in Montana, marking a transition from development-stage planning to near-term commercial production.
• The transaction utilizes a capital-efficient lease structure requiring ~$1.25M upfront for modifications and relocation, followed by a fixed monthly lease and maintenance fee over a five-year term, with an option to purchase the equipment at term end.
• The company engaged E.F. Hutton & Co. to pursue bridge and/or debt financing to fund plant relocation, installation, and working capital, with commissioning and first helium sales targeted for mid-2026.

Key Details

• Agreement Scope: Definitive agreement signed for relocation, installation, and commissioning of an existing operational helium processing plant; all commercial terms finalized including schedule, lease structure, and long-term operational support; mobilization expected to commence immediately.
• Plant Specifications: ~10-million-cubic-foot-per-day inlet capacity; >98% helium purity; upgradable to 99.999% ultrahigh purity; expandable to ~15 million cubic feet per day.
• Production Timeline: Commissioning and first helium sales anticipated in mid-2026, following drilled wells, installed pipelines, secured plant site, and a take-or-pay offtake agreement.
• Upfront Capital: ~$1.25 million (U.S.) for plant modifications, relocation, reinstallation, and commissioning; company responsible for ancillary site costs.
• Lease & Maintenance Terms: Fixed monthly lease and maintenance fee over a five-year term, including continuing technical support, maintenance provisions, and replacement hardware coverage to provide predictable operating costs.
• Purchase Option: Avanti retains the option to purchase and fully own the equipment at the conclusion of the five-year lease term, preserving long-term ownership upside.
• Financing Engagement: Entered into an engagement letter with E.F. Hutton & Co. to pursue potential bridge financing and/or debt financing alternatives to support plant relocation, installation, and working capital initiatives.
• Site Preparation: Sweetgrass site substantially prepared with leased land, road access, and pipeline connections; civil works to commence as field conditions allow.

Notable Quotes

• "This is a transformational moment for Avanti," said Chris Bakker, chief executive officer of Avanti Helium. "We have removed construction uncertainty, shortened our path to revenue and positioned the company to enter cash flow within months of commissioning. With strong well productivity at Sweetgrass and a ready-to-deploy plant, we are now accelerating toward meaningful helium sales in a strengthening North American market."