Avanti to fast-track Sweetgrass helium plant

Executive Summary

• Avanti Helium Corp. signed a non-binding term sheet with a U.S.-based partner to fast-track the development of its Sweetgrass helium recovery plant and secure a five-year offtake agreement for 100% of production.
• The partner will finance, build, own, and operate the helium recovery unit (HRU), allowing Avanti to adopt a capital-light operating model and avoid significant upfront capital expenditures.
• The agreement positions Avanti for first production and revenue generation in 2026, superseding a previously terminated midstream partnership.

Key Details

• Transaction Structure: Non-binding term sheet for funding, construction, ownership, and operation of the Sweetgrass helium recovery plant in Montana.
• Plant Capacity: Initial design capacity of 10 million cubic feet per day (MMcf/d), scalable to 15 MMcf/d based on production performance and reservoir analysis.
• Capital Model: Capital-light structure where Avanti pays the partner a monthly fee based on a mutually agreed return on deployed capital, preserving shareholder capital.
• Offtake Agreement: Partner will purchase all currently uncontracted helium volumes for a term of five years, with pricing subject to review after year three.
• Pipeline Option: Partner holds an option to acquire Avanti's previously constructed Sweetgrass pipeline infrastructure.
• Timeline: Definitive agreements expected in the coming weeks; production and revenue generation targeted for 2026.
• Previous Partnership: Supersedes a previously announced midstream partnership, which was amicably terminated by mutual agreement.

Notable Quotes

• "This agreement represents a transformational step forward for Avanti... By aligning with a well-capitalized, technically capable partner, we're not only accelerating our path to production and cash flow, but doing so with maximum benefit to our shareholders." — Chris Bakker, CEO