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 Avanti Helium Corp. (TSXV: AVN,OTC:ARGYF) (OTC: ARGYF) ("Avanti" or the "Company") is pleased to announce the signing of a non-binding term sheet with a publicly traded U.S.-based company ("the Partner") for the funding, construction, ownership, and operation of its Sweetgrass Helium Recovery Plant in Montana. Upon completion of the facility, the Partner will purchase the remaining available helium production for a term of five years.
Once final documents are completed, this agreement will mark a pivotal milestone in Avanti's journey toward first production and monetization of its flagship Sweetgrass asset. It will unlock access to third-party capital, accelerate project timelines, and expand commercial offtake volumes to 100% of production.
Key Highlights of the Non-Binding Term Sheet:
Turnkey Helium Plant Development
The Partner will fund, build, own, and operate the Sweetgrass Helium Recovery Unit ("HRU"), with initial design capacity of 10 million cubic feet per day (MMcf/d), scalable to 15 MMcf/d based on production performance and reservoir analysis. This capital-efficient structure enables Avanti to remain focused on high-value exploration and development while leveraging the Partner's infrastructure expertise.
Capital-Light Operating Model
Upon commissioning, Avanti will pay the Partner a monthly fee based on a mutually agreed return on deployed capital. This model provides operational certainty and preserves shareholder capital by avoiding significant upfront capital expenditures.
Pipeline Integration Option
The Partner also holds an option to acquire Avanti's previously constructed Sweetgrass pipeline infrastructure, which connects its producing wells to the HRU site—streamlining operations and enhancing alignment between upstream and midstream functions.
Expanded Offtake Footprint
The Term Sheet includes provisions for the Partner to purchase all currently uncontracted helium volumes from the Sweetgrass facility under a five-year offtake agreement, with pricing subject to review after year three. This creates a robust commercial foundation for full-field monetization and cash flow predictability.
This new arrangement supersedes a previously announced midstream partnership, which has been amicably terminated by mutual agreement. Avanti thanks the former partner for its collaboration and wishes them continued success.
Positioning for 2026 Production
With the Term Sheet in place, Avanti and the Partner are now advancing toward definitive agreements, expected in the coming weeks. Once finalized, this transaction will provide the Company with a clear and fully funded path to production and revenue generation in 2026.
"This agreement represents a transformational step forward for Avanti," said Chris Bakker , CEO of Avanti Helium. "By aligning with a well-capitalized, technically capable partner, we're not only accelerating our path to production and cash flow, but doing so with maximum benefit to our shareholders. This structure enables flexibility and scalability while preserving upside in a helium market that continues to strengthen. As the global supply chain rebalances and US demand continues to rise, we believe Avanti is ideally positioned to become a key North American supplier."
Additional project updates—including progress on definitive documentation, plant commissioning milestones, and commercialization timelines—will be shared in the weeks ahead.
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 .
Website: 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.
View original content: http://www.newswire.ca/en/releases/archive/September2025/04/c2421.html
