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Avanti Helium Corp. (TSXV: AVN,OTC:ARGYF) (OTC: ARGYF) ("Avanti" or the "Company") is pleased to announce that it has executed a definitive agreement with, an established helium technology provider for the relocation, installation, and commissioning of an existing, operational helium processing plant at its Sweetgrass helium project in Montana.
The execution of this definitive agreement marks a major inflection point for Avanti. The Company has now transitioned from development-stage planning to near-term production, materially accelerating its entry into meaningful helium sales in the United States.
This milestone follows the previously announced memorandum of understanding dated January 14, 2026, and formally advances the Sweetgrass project into execution.
KEY HIGHLIGHTS
Definitive Agreement Signed – Execution Phase Underway
All commercial terms have been finalized including plant relocation, installation, commissioning schedule, lease structure, and long-term operational support. Mobilization activities are expected to commence immediately. Closing of the agreement is subject to customary conditions.
Operational, Proven Plant – No Procurement Risk
The helium processing plant is fully constructed and operationally proven, with approximately three months of runtime to date. By securing an existing facility rather than constructing new infrastructure, Avanti has eliminated long lead times for certain components and significantly reduced capital and execution risk.
Designed for Immediate Commercial Volumes and Expansion
- ~10 MMcf/d inlet capacity
- >98% helium purity
- Upgradeable to 99.999% ultra-high purity
- Expandable to ~15 MMcf/d
This configuration provides immediate commercial scale with built-in growth capacity.
Anticipated Sales in 2026
With wells drilled, pipelines installed, and the plant site secured at Sweetgrass, and a take-or-pay offtake agreement in place, Avanti expects commissioning and first helium sales in mid-2026.
Step-Change in Helium Sales Profile
This agreement materially accelerates Avanti's helium sales ramp. Upon commissioning, the Company will transition from development-stage to active helium producer in the U.S. market, with full control of production, processing, and commercialization.
Capital-Efficient Commercial Structure with Long-Term Upside
Under the terms of the definitive agreement, Avanti will pay approximately US$1.25 million for plant modifications, relocation, reinstallation, and commissioning at Sweetgrass. Avanti will also be responsible for ancillary site costs.
This structure provides a highly capital-efficient pathway to production. Constructing a new-build helium processing facility would typically require materially higher capital expenditures and extended lead times. By deploying a proven, operational plant for a modest upfront investment relative to replacement cost, Avanti materially reduces both capital intensity and timeline risk.
Upon commissioning and commencement of operations, Avanti will pay a fixed monthly lease and maintenance fee over a five-year term. The agreement includes ongoing technical support, maintenance provisions, and replacement hardware coverage, providing predictable operating costs and minimizing operational uncertainty during the initial production phase.
Importantly, at the conclusion of the five-year lease term, Avanti retains the option to purchase and fully own the equipment. This structure provides immediate production and cash flow exposure while preserving long-term ownership upside and strategic flexibility.
Management believes this phased capital model offers several key advantages:
- Minimal upfront capital relative to new-build alternatives
- Accelerated timeline to production
- Predictable fixed operating costs
- Reduced technical and commissioning risk
- Preserved balance sheet flexibility
- Long-term purchase optionality
By combining a disciplined upfront investment with a fixed-cost operating framework and ultimate ownership option, Avanti has structured a transaction that aligns capital efficiency with rapid production growth.
Transformational Strategic Impact
The Sweetgrass site is substantially prepared to receive the plant, with leased land, road access, and pipeline connections already in place. Civil works will commence as soon as field conditions allow, and installation activities will commence following mobilization.
This definitive agreement materially compresses the Company's development timeline and eliminates delays typically associated with new-build helium facilities. As a result, Avanti is now positioned to rapidly transition to sales.
Management believes this milestone represents a fundamental re-rating catalyst for the Company, shifting Avanti from exploration and development status toward a near-term U.S. helium producer.
"This is a transformational moment for Avanti," said Chris Bakker, CEO of Avanti Helium. "We have removed construction uncertainty, shortened our path to revenue, and positioned the Company to enter cash flow within months of commissioning. With strong well productivity at Sweetgrass and a ready-to-deploy plant, we are now accelerating toward meaningful helium sales in a strengthening North American market."
Capital Markets Update – Engagement of E.F. Hutton
In connection with advancing the Sweetgrass project toward production, the Company is pleased to announce that it has entered into an engagement letter with E.F. Hutton LLC to pursue potential bridge financing and/or debt financing alternatives to support plant relocation, installation, and working capital initiatives.
E.F. Hutton & Co. is an investment bank and broker-dealer headquartered in Manhattan, providing comprehensive advisory and financing solutions to a diverse range of clients including corporates, sponsors, and public-private partnerships. With a global footprint, we offer end-to-end investment banking services encompassing capital markets, PIPEs, private placements, M&A advisory, and strategic financing. The Executive Team at E.F. Hutton & Co. has a proven track record of delivering unwavering strategic advice to clients across the U.S., Asia, Europe, the UAE, and Latin America.
The Company believes that securing non-dilutive or minimally dilutive bridge and/or debt financing options, alongside its accelerating production timeline, further strengthens the overall value proposition and supports a disciplined capital structure as Avanti enters its next phase of growth.
Next Steps
The Company will pursue all the following steps in the coming months, with many occurring concurrently:
- Commence plant relocation
- Complete civil works and installation
- Commission facility
- Initiate helium production and commercial sales
- Advance financing initiatives with E.F. Hutton
The Company will continue to provide updates as key milestones are achieved.
About Avanti Helium Corp.
Avanti is focused on the exploration, development, and production of helium across western Canada and the United States. Avanti's experienced oil and gas exploration and production team is actively targeting helium trapped in structures to meet increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical, aerospace, and semiconductor industries.
Website: www.avantihelium.comÂ
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.
View original content: http://www.newswire.ca/en/releases/archive/February2026/24/c3532.html
