CALGARY,
AB, Sept. 4, 2024 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce it has closed the second and final tranche
(the "Second Tranche") of its previously announced non-brokered
private placement (the "Offering") of units of the Company
("Units") by issuing 1,000,000 Units at a price of $0.25 per Unit for aggregate gross proceeds of
$250,000. Together with the first
tranche of the Offering (the "First Tranche"), the Company issued
an aggregate of 2,200,000 Units for aggregate gross proceeds of
$550,000.
Each Unit is comprised of one (1) common share of the Company (a
"Share") and one (1) Share purchase warrant (each a "Unit
Warrant"), with each Unit Warrant entitling the holder to purchase
one (1) additional Share at a price of $0.30 per Share for a period of one (1) year from
the date of issuance.
Chris Bakker, the Chief Executive
Officer and a director of the Company ("Bakker") purchased an
aggregate of 2,000,000 Units in the First Tranche and the Second
Tranche, and such participation is considered a "related party
transaction" as defined under Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is exempt from the
requirement to obtain a formal valuation and minority shareholder
approval in connection with Bakker's participation in the First
Tranche and the Second Tranche in reliance of sections 5.5(a) and
5.7(a) of MI 61-101, respectively, on the basis that the
participation in the First Tranche and the Second Tranche by Bakker
did not exceed 25% of the fair market value of the Company's market
capitalization.
The net proceeds of the Offering will be used for ongoing costs
associated with the Company's projects and general working capital
requirements.
All securities issued under the Second Tranche, including
securities issuable on the exercise thereof, are subject to a hold
period expiring on January 5, 2025,
in accordance with applicable securities laws and the policies of
the TSX Venture Exchange.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
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.
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.