Imperial Helium (TSXV: IHC) is forging ahead with the development of its flagship Steveville property following the release of production data last week. The firm this morning announced an agreement to construct a prototype plant for producing pure helium.
The arrangement to construct the prototype plant, which is to produce Grade A 99.9999% pure helium, has been entered into with ON2 Solutions and Uniper Trading Canada, as written in the strategic alliance agreement announced back in March. The agreement stipulates that the plant is “to expedite the development, production and monetization of Imperial Helium projects in Canada.”
The plant itself has been designed to be able to process a range of gas compositions to produce pure helium, with the slightly different compositions from each field not expected to negatively impact production. The plant is said to be able to create a synthetic gas composition that is similar in makeup to the dry gas composition of an individual field, while also able to process it to produce the pure helium.
The plant itself is expected to be rather inexpensive, with it expected to cost Imperial roughly $400,000, with construction slated to be complete by year end. “This Prototype Plant provides Imperial Helium with the ability to accelerate the path to monetising the Steveville asset and reduce the risk associated with plant design and fabrication before committing to installation for any asset,” commented CEO David Johnson on the news.
Demonstration of the plants capabilities are expected to occur in the first quarter of 2022, while the first production of helium is slated to occur in the second half of 2022 from the Steveville property.
Imperial Helium last traded at $0.205 on the TSX Venture.
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