Avanti Energy closes joint Venture on Montana helium project
Vancouver, B.C., March 11, 2021. Avanti Energy Inc. (TSXV Symbol: AVN)(US OTC PINK: ARGYF) (the “Company”) is pleased to announce that it has closed its previously announced transaction (see news release dated December 22, 2020) to form a joint venture with Terrelium Resources Corp. (“Terrelium”) whereby the Company and Terrelium will 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 the 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, 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 issued to Terrelium a total of 4,900,000 common shares of the Company.
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 issued are subject to restrictions on resale expiring on July 12, 2021.
About Avanti Energy
Avanti Energy is focused on the exploration, development and production of helium across western Canada and the United States. Avanti’s professional oil and gas exploration and production team is actively targeting untapped potential helium reserves to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries. For more information, please go to the Company’s website at www.gradyf10.sg-host.com.
For corporate and shareholder inquiries, please contact:
Rob Gamley, President & CEO
Avanti Energy Inc.
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.