Company Update

Source: RNS
RNS Number : 4166E
Helium One Global Ltd
17 September 2024
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.


17 September 2024

 

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Helium One Global Ltd

("Helium One" or "the Company")

Company Update

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide the following updates.

Highlights

·    The Company has now submitted a comprehensive Mining Licence ("ML") application to the Ministry of Minerals ("MoM") and Mining Commission ("MC") for the southern Rukwa Helium Project which encompasses the Itumbula, Tai and southern prospective areas for commercial development

·    The ML incorporates a detailed feasibility study for the southern Rukwa Helium Project incorporating detailed subsurface modelling and commercial development plan

·    Accompanying ESIA study completed by MTL Consulting, and awaiting approval from the National Environment Management Council ("NEMC")

·    A total of 888 km2 of the Company's prospecting licences ("PL") have now expired and the licences are now lapsed.  These are licences that are deemed of limited prospectivity and or are poorly accessible, which will save the Company in excess of US$177,600 in annual licence fees

 

Lorna Blaisse, Chief Executive Officer, commented:

"This is yet another major milestone in the Company's history. The last 12 months have been a very significant chapter for Helium One in which we have made a successful helium discovery, completed a detailed feasibility study, established a commercial development plan and successfully applied for a ML. An extraordinary achievement within that timeframe and I am very grateful to the efforts of everybody involved.

We very much look forward to progressing the project in Tanzania through to production, as well as remaining opportunistic on further opportunities in-country and elsewhere.

We are also entering a very busy period with our joint venture with Blue Star Helium in Colorado where we look forward to completing the acquisition and starting the drilling phase of the upcoming development wells on the Galactica-Pegasus project. We look forward to providing updates on the progress of the drilling programme in due course.

The Company would like to thank the Ministry of Minerals and the Mining Commission for their continued support and their engagement with the recent success in southern Rukwa and looks forward to their positive response and to developing a partnership with the Government of Tanzania upon the granting of the ML, in order to develop a flagship helium sector in Tanzania."


Mining Licence Application

The completion of the feasibility study and the six month ESIA study has enabled the Company to successfully submit a ML application over the Itumbula-Tai area in southern Rukwa. The Company very much looks forward to developing a partnership with the Government of Tanzania upon the granting of the ML application, in order to develop a flagship helium sector in Tanzania as we advance into development and production.

The feasibility study, prepared by the Company across multiple disciplines, and which is the basis of the ML application, assesses the technical, economic and environmental feasibility of a helium development project from southern Rukwa. The Company has been working on this study for several months and has integrated the results of the extended well test ("EWT") from the Itumbula West-1 ("ITW-1") discovery well. The details of the feasibility study outline and demonstrate a commercial development plan in southern Rukwa.

 

Expiry of Prospecting Licences in Eastern Rukwa, Eastern Eyasi and Balangida

A number of PLs held by the Company have reached the end of their second and final renewal term and will automatically lapse on 17th September 2024, except for those in southern Rukwa which are now under application for a ML. By allowing these to lapse at the end of the final exploration term, the Company will save US$177,600 per year in annual license fees.

The Company has fully relinquished its expired PLs on the eastern side of Lake Rukwa totalling 233 km2, where the area is deemed of limited prospectivity as well as being too difficult to access and or offshore on the lake. In addition, following a partial relinquishment earlier this year after a comprehensive gravity-magnetics study, the Balangida Rift Basin PL totalling 134 km2 has now also expired.

The remaining PLs reaching their final exploration renewal term on 17th September 2024 are two PLs in the eastern Eyasi Rift Basin. These PLs are located in an area deemed to offer little to no prospectivity and total a combined area of 521 km2. The Company still retains a 286 km2 PL in the central Eyasi Rift Basin.

Whilst these PLs have reached the end of their exploration period, the Company continues to review all geological regions of Tanzania for helium potential and remains opportunistic for future PL applications.

 

Next Steps

Following the submission of the ML application, the Company will continue to engage with the MoM and MC in Tanzania whilst awaiting the award of the ML before progressing the southern Rukwa Helium Project development.

The Company-owned drilling rig, Epiroc 220, remains hot stacked in the southern Rukwa region and remains operationally ready.

The Company continues to review the remaining PL it holds in Tanzania, particularly off the back of the learnings from the success in southern Rukwa.

Our partnership with Blue Star Helium is progressing as we work towards completion of the acquisition announced on 27th August 2024 which will result in the Company owning a 50% stake in the Galactica-Pegasus project in Colorado, USA.  Once the acquisition is completed, we will move ahead to the commencement of the Q4 drilling campaign on the Galactica-Pegasus development.

 

For further information please visit the Company's website: www.helium-one.com   

 

Contact

Helium One Global Ltd

Lorna Blaisse, CEO

Graham Jacobs, Finance and Commercial Director

+44 20 7920 3150

 


Panmure Liberum Limited (Nominated Adviser and Joint Broker)

Scott Mathieson

Nikhil Varghese

+44 20 3100 2000

 


Zeus Capital Limited (Joint Broker)

Simon Johnson

Louisa Waddell

+44 20 3829 5000

 

 


Tavistock (Financial PR)

Nick Elwes

Tara Vivian-Neal

+44 20 7920 3150

 

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% helium by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship southern Rukwa Project is located within the Rukwa Rift Basin covering 1,664km2 in south-west Tanzania.  This project is considered to be entering an appraisal stage following the success of the 2023/24 drilling campaign, which has proved an established helium system where the Itumbula West-1 exploration well successfully flowed 4.7% helium to surface in Q1 2024.

Following a successful operation to extend the depth of the well, and a follow-on extended well test undertaken in July and August 2024, the Company has now flowed significant quantities of helium to surface and is in the process of filing a Mining Licence application with the Mining Commission of the Tanzanian Government. Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

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