Avanti Energy (TSXV: AVN) this morning announced that it has entered into a letter of intent to acquire certain rights in Montana. The rights apply to helium, on a land package of 12,000 acres.
The letter of intent was reportedly entered into with a private land holder group specifically for the rights to helium. Located in north-central Montana, the land is reportedly in close proximity to, and on trend with helium regions in southwestern Saskatchewan. As a result, helium is expected to be found in the Cambrian to Devonian zones.
Both 2D and 3D seismic data has been constructed for the property, with the formations indicating they are prospective for helium trapping within sedimentary formations. Concentrations of helium have been identified via multiple gas analyses conducted on the claims, which is indicative of the potential for deep helium-rich zones.
A farm-in agreement is expected to be entered into with the private rights holders upon further due diligence, which is expected to be completed in June. If completed, the land package would bring Avanti’s prospective acres for helium to approximately 21,000.
Avanti Energy last traded at $2.73 on the TSX Venture.
Information for this briefing was found via Sedar and Avanti Energy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
