CALGARY,
AB, April 10, 2024 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce that, further to its press releases dated
March 20, 2024 and April 4, 2024, it has closed the first tranche
(the "First Tranche") of its previously announced non-brokered
private placement (the "Offering") of units ("Units") of the
Company by issuing 1,692,269 Units at a price of $0.40 per Unit for aggregate gross proceeds of
$676,908. Each Unit is comprised of
one (1) common share of the Company (a "Share") and one (1) Share
purchase warrant (a "Warrant"), with each Warrant exercisable to
acquire one (1) additional Share (a "Warrant Share") at an exercise
price of $0.60 per Warrant Share
until April 9, 2025.
In connection with the First Tranche, the Company paid and
issued an aggregate of $31,380 and
78,450 Share purchase warrants ("Finder's Warrants") in finder's
fees. Each Finder's Warrant is exercisable to acquire one (1) Share
(a "Finder's Warrant Share") at an exercise price of $0.60 per Finder's Warrant Share until
April 9, 2025.
All securities issued under and in connection with the Offering
are subject to a statutory hold period expiring on August 10, 2024, in accordance with applicable
securities laws and the policies of the TSX Venture Exchange (the
"Exchange").
The Company expects to close the second tranche (the "Second
Tranche") of the Offering shortly. The Offering remains subject to
all necessary approvals, including final acceptance by the
Exchange.
An insider of the Company (the "Insider") is expected to
participate in the Second Tranche, and such participation would be
considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The Company intends
to rely on exemptions from the formal valuation and minority
shareholder approval requirements provided under sections 5.5(a)
and 5.7(a) of MI 61-101 on the basis that the participation in the
Offering by the Insider will not exceed 25% of the fair market
value of the Company's market capitalization.
The net proceeds of the Offering will be used for various work
related to the Company's Helium Recovery Plant located on the
Sweetgrass Pool in Montana and for
general working capital.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
About Avanti Helium Corp.
Avanti 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 helium trapped in
structures 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.avantihelium.com.
Forward-Looking Statements
The 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: statements relating to the expected timing for
the development of the helium recovery plant and timing estimates
with respect to initial production therefrom, statements relating
to the expected benefits to Avanti from the midstream agreement and
liquefaction tolling agreement, statements relating to obtaining
financing to fund associated infrastructure work for the plant,
risks associated with helium exploration, development, production,
marketing and transportation, volatility in helium prices, risks
relating to the Company's ability to access sufficient capital from
production and external sources, 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. Please see the
public filings of the Company at
www.sedarplus.ca for further information and risks
applicable to the Company.
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.
SOURCE Avanti Helium Corp.