Helium One provided a company update on Tuesday, detailing the submission of a mining license to Tanzanian authorities and the acquisition of a stake in a helium project in the United States.
Following encouraging initial results from its operations at the southern Rukwa Helium Project, Helium One is advancing with further development plans.
The company has submitted a mining license application for the Itumbula-Tai area in southern Rukwa, which includes a comprehensive feasibility study based on the evaluation work conducted so far. Helium One is now awaiting feedback from the Tanzanian Ministry of Minerals and Mining Commission.
The company also intends to let several of its prospecting licenses expire, resulting in annual savings of around $170,000.
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
“This is another major milestone in the company’s history,” said Lorna Blaisse, Chief Executive Officer of Helium One.
“The past 12 months have been a very significant period for Helium One, during which we successfully discovered helium, completed a comprehensive feasibility study, developed a commercial plan, and submitted a mining license application. Achieving all this in such a short timeframe is extraordinary, and I am deeply appreciative of everyone’s efforts involved.”
“We are excited to advance our project in Tanzania toward production while also exploring further opportunities both within the country and beyond.
“Additionally, we are entering a busy phase with our joint venture with Blue Star Helium in Colorado. We look forward to finalizing the acquisition and initiating the drilling phase for the upcoming development wells on the Galactica-Pegasus project. We will provide updates on the drilling program as it progresses.
“The Company would like to express its gratitude to the Ministry of Minerals and the Mining Commission for their ongoing support and engagement, particularly regarding our recent success in southern Rukwa. We anticipate a positive response and hope to establish a partnership with the Government of Tanzania upon receiving the ML, with the goal of developing a flagship helium sector in the country.”
Regarding our acquisition of a 50% stake in the Galactica-Pegasus project in Colorado, Helium One noted that our partnership with Blue Star Helium is making good progress.
