Avanti Helium signs helium offtake agreement

Executive Summary

• Avanti Helium Corp. has secured a multiyear take-or-pay helium offtake agreement with a leading global industrial gases supplier, marking a significant commercial milestone toward production at its Sweetgrass helium recovery unit in Montana.
• The agreement includes a three-year initial term with renewal options, committing the buyer to a minimum monthly volume representing approximately 33% of initial plant output and 25% of production volume following the facility's planned expansion.
• While specific pricing and counterparty names are confidential, the deal locks in a substantial revenue stream and serves as the first of several expected commercial arrangements to fully contract the facility's output.

Key Details

• Agreement Structure: Multiyear take-or-pay helium offtake agreement with a leading global supplier of industrial gases.
• Term: Three-year initial term with renewal options.
• Volume Commitments:
  • Buyer committed to a minimum monthly volume representing approximately 33% of initial plant output.
  • Commitment represents 25% of production volume following the facility's planned expansion.
• Operational Status: Both of Avanti's high-deliverability wells (WNG 11-22 and WNG 10-21) are fully piped to the edge of the Helium Recovery Unit (HRU) site.
• Strategic Context: The agreement validates the strategic importance of the Sweetgrass asset and Avanti's focus on U.S. assets, leveraging rising helium prices and strengthening supply-demand fundamentals.
• Future Outlook: This is the first of several expected commercial arrangements; the company is actively engaged in discussions with other potential offtake partners for remaining volumes.
• Confidentiality: Counterparty name and specific pricing terms remain undisclosed due to confidentiality provisions.

Notable Quotes

• "The execution of this offtake agreement is a pivotal achievement for Avanti as we move toward production... This agreement validates the strategic importance of both our Sweetgrass asset and general focus on U.S. assets, and elevates Avanti as a key player in the North American helium landscape." — Chris Bakker, Chief Executive Officer

Note: The release also includes an administrative announcement regarding the grant of 4.6 million stock options to employees, directors, officers, and consultants, exercisable at 11 cents per share for a five-year period. However, the material offtake agreement drives the primary classification as "News."