REG - Helium One Global Ld - Company Update

Helium One GlobalAnnouncement

17/09/2024 07:00

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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

 

 

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 km(2) 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 17(th) 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 km(2), 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 km(2) has now also expired.

The remaining PLs reaching their final exploration renewal term on 17(th)
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 km(2). The Company still retains a 286 km(2) 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 27(th) 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
(http://www.helium-one.com)

 

Contact

 Helium One Global Ltd                                         +44 20 7920 3150

 Lorna Blaisse, CEO

 Graham Jacobs, Finance and Commercial Director

 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 20 3100 2000

 Scott Mathieson

 Nikhil Varghese

 Zeus Capital Limited (Joint Broker)                           +44 20 3829 5000

 Simon Johnson

 Louisa Waddell

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian-Neal

 

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 1,664km(2) 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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