- Helium Evolution (HEVI) has entered into a farmout agreement and announced a private placement with North American Helium (NAH)
- Helium Evolution will enter into a private placement with North American Helium for gross proceeds of $3.5 million
- NAH will drill a total of five wells, incurring 100 per cent of the drill expenditures and retain 80 per cent operating interest in each well drilled
- Helium Evolution is a Canadian-based helium exploration and production company
- Helium Evolution is a Canadian-based helium exploration and production company holding the largest helium land rights position in North America
- Helium Evolution Incorporated (HEVI) opened trading at C$0.47
Helium Evolution (HEVI) has entered into a farmout agreement and announced a private placement with North American Helium (NAH).
NAH is a private helium company engaged in the exploration, development, production, refining and marketing of helium in North America.
Helium Evolution will enter into a private placement with North American Helium for gross proceeds of $3.5 million.
Each unit, priced at C$0.40 will consist of one common share and one third of one share purchase warrant. Each whole warrant will entitle NAH to purchase one additional share of Helium Evolution at a price of $0.70 within 24 months after the closing date of the offering.
The offering will close on or about June 28, 2022.
The net proceeds of the offering will be used to fund HEVI’s obligations with respect to the farmout agreement, including ongoing drilling and development capital expenditures and for general corporate purposes.
NAH will drill a total of five wells, incurring 100 per cent of the drill expenditures, on three predetermined blocks of land in Saskatchewan. For each well, NAH will earn an 80 per cent operating interest in the section on which the well was drilled plus nine contiguous sections of land adjoining to the well, up to a maximum of 32,000 acres. Helium Evolution will retain a 20 per cent working interest in the earned lands and each successful well drilled by NAH.
HEVI CEO, Greg Robb, commented on the agreement with North American Helium.
“This Farmout Agreement with North American Helium truly sets us apart, as we are able to work with one of the helium industry’s leading operators, and to welcome them as a strategic equity investor.”
He added,
“Having this Farmout Agreement validates our original strategy to acquire sizeable acreage in Saskatchewan in regions featuring a high probability of helium reserves, while the Offering allows HEVI to successfully fund the farmout arrangement with North American Helium and provides substantial financial flexibility to continue executing our overall strategy.”
Helium Evolution is a Canadian-based helium exploration and production company holding the largest helium land rights position in North America. HEVI has over five million acres of land under permit near proven discoveries of economic helium concentrations.
Helium Evolution Incorporated (HEVI) opened trading at C$0.47.