Vancouver, B.C., December 21, 2020. Avanti Energy Inc. (TSXV Symbol: AVN) (the “Company”) is pleased to announce that it has entered into a joint venture agreement dated December 17th, 2020 (the “Joint Venture Agreement”) with Terrelium Resources Corp. (“Terrelium”) whereby the Company and Terrelium have agreed to cooperate in the exploration and development of a helium project, located in Montana (the “Helium Project”).
About the Helium Projects
The Helium Project consists of a lease of two parcels of land consisting of 2,749 acres, located in County of Petroleum, State of Montana.
The lease is for an original period of five years and, upon the discovery of helium, oil or gas, may be extended by an additional thirty (30) years. The lease is also subject to a royalty on 4.25% of the gross proceeds of the sale of helium and 12.5% on the sale of products produced from the lease.
Terms of the Joint Venture
Under the terms of the Joint Venture Agreement, the Company will acquire a 90% interest in the Helium Project and Terrelium will provide technical services for the exploration, development and, if applicable, production of the Helium Project. In consideration of the 90% interest and the technical services provided by Terrelium, the Company has agreed to issue to Terrelium a total of 4,900,000 common shares of the Company on the date of TSX Venture Exchange approval.
The Company will also be responsible for providing initial funding for the joint venture of $50,000 per month over a six month period for a total of $300,000. Provided that Terrelium provides its technical services and the Company agrees to any further expenditures, the Company will also fund any subsequent operations of the joint venture.
As the Company will hold a 90% interest in the Helium Project, the Company retains the sole right to terminate the Joint Venture Agreement.
The securities to be issued to Terrelium under the Joint Venture Agreement will be subject to a four month hold.
The transaction is an arm’s length transaction.
The Joint Venture Agreement and the transactions contemplated therein are subject to acceptance of the TSX Venture Exchange.
For more information regarding the Company, please contact Rob Gamley at (604) 689-7422.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AVANTI RESOURCES INC.
Signed “Rob Gamley”
_______________________
President and Chief Executive Officer
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.