Avanti Helium signs MOU for helium processing plant

Executive Summary

• Avanti Helium Corp. signed a non-binding MOU to relocate and deploy an existing, fully constructed helium processing plant to its Sweetgrass project in Montana.
• The deployment is designed to materially compress the development timeline, targeting first helium production and sales in 2026.
• The arrangement utilizes a capital-efficient multiyear lease structure with maintenance provisions, allowing Avanti to avoid significant upfront capital expenditures while retaining full operational control and commercialization rights.

Key Details

• Transaction Structure: Non-binding MOU for the relocation, installation, commissioning, and operation of an existing U.S.-based helium processing plant; definitive documentation is currently being advanced.
• Plant Specifications & Capacity: Existing operational facility with ~3 months of runtime; designed inlet capacity of ~10 million cubic feet per day (expandable to ~15 million); targeted 95% uptime; helium purity >98% (upgradable to 99.999% ultrahigh-purity); includes helium recovery unit and integrated truck-loading system.
• Commercial & Lease Terms: Multiyear lease with renewal and purchase options; fixed monthly fee structure eliminates upfront capital costs; includes paid maintenance provision for hardware replacement and technical support.
• Operational Control: Avanti will operate both the wells and the plant, maintaining full control of operations, production data, and commercialization, while leveraging continuing specialized technical support from the technology provider.
• Project Readiness & Timeline: Sweetgrass site is prepared with leased land, road access, and pipeline connections from existing wells installed; civil works for plant placement and truck loading will commence upon definitive agreements; accelerated timeline targets first production and sales in 2026.
• Previous Term Sheet Discontinued: Avanti is no longer pursuing the previously announced term sheet from Sept 4, 2025, citing the superior commercial terms and shareholder value of the current MOU.
• Next Steps: Parties are advancing definitive agreements covering final engineering scope, commercial terms, and a detailed relocation and commissioning schedule; further updates will be provided as milestones are achieved.

Notable Quotes

• "This is a major step forward for Avanti," said Chris Bakker, chief executive officer. "Securing access to an existing, U.S.-based helium processing plant with minimal hours of runtime allows the company to materially compress our development timeline while reducing capital and execution risk. With infrastructure in place at Sweetgrass and strong productivity from our wells, this approach positions us to move quickly toward revenue generation in a strengthening North American helium market."