Aclara Announces the Passing of Ms. Karen Poniachik, Member of the Board of Directors

Highlights of the second quarter and first half of 2022 from HEVI:

Three months ended June 30 Semester ended June 30
Tabular amounts in thousands of Canadian dollars, except per share and per share amounts 2022 2021 2022 2021
Financial
Net loss $ 1,342 $ 65 $ 2,996 $ 785
Net loss per share, basic and diluted 0.02 0.00 0.05 0.04
Cash 14,216 332 14,216 332
Working capital 14,803 320 14,803 320
Total assets 17,674 341 17,674 341
Total responsibilities $ 976 $ 21 $ 976 $ 21
Weighted average number of shares outstanding
Basic and diluted 1 79 118 595 20,274,129 60 467 902 17,910,925

1 The weighted average number of common shares outstanding is not increased for stock options and warrants outstanding when the effect is anti-dilutive.

The second quarter of 2022 was HEVI’s first full quarter as a publicly traded company, cementing HEVI’s position as the largest helium exploration rights holder in North America among helium companies. listed on the stock exchange. The highlight of the quarter was the announcement of the HEVI farm-out agreement (the ” farm-out agreement “) with North American Helium Inc. (” NAH “) and private placements from strategic, non-traded and associated investors, which raised aggregate gross proceeds of $6.9 million. NAH’s farm-out agreement validates and differentiates HEVI’s strategy, while aligning the Company with one of the helium industry’s leading operators.The related financings enhanced HEVI’s financial flexibility to fund the farm-out arrangement and the execution of our overall strategy, while contributing also to a cash balance of approximately $14.0 million at the end of Q2/22.

HEVI’s in-house exploration and development program is complemented by our lease with NAH which provides additional opportunities and additional capital to prove the company’s asset base and continue to move towards commercialization. Under the lease, NAH will drill a total of five wells while incurring 100% of the drilling expenditures on three pre-determined blocks of land in Saskatchewan, representing approximately 2.3 million acres located west of the Third Meridian. (the ” Blocks “), excluding our current drilling objective at McCord. For each well drilled, NAH will obtain an 80% operating interest in the section on which the well was drilled plus nine contiguous sections of land adjoining the well, up to a maximum of 32,000 HEVI will retain a 20% working interest in the reclaimed lands and each well drilled successfully by NAH (the ” Direct interest of HEVI “).

Capital expenditures during the second quarter totaled $1.06 million, primarily for licensing and environmental work, the start of drilling of the company’s first helium exploration well, as well as to pre-purchase casing to alleviate lingering supply chain issues. Drilling of both wells was completed during the third quarter, and although both indicated the presence of helium, the targeted geologic traps did not contain sufficient helium to support production testing at this time. HEVI is committed to maintaining capital discipline and is conducting further analysis of logs and other information obtained through the drilling process to date. We intend to obtain additional 2D seismic data from McCord to facilitate and improve the visibility of the game, and we may also choose to reintegrate these wells in the future. We believe the NAH drill program will also provide valuable data to support the identification of future high quality drill targets.

Currently, HEVI has approximately $10 million in cash and rigorous cost reduction initiatives in place to optimize funds for asset development. In addition, we benefit from a valuable farm-out agreement that can complement our ongoing exploration and development efforts. The HEVI team maintains full confidence in the prospectivity of our vast land package and, due to the long tenure of helium permits granted by the Government of Saskatchewan, retains considerable flexibility in managing our capital.

Change of direction and update of the presentation of the company

HEVI also announced today that Chief Financial Officer, Ryan Tomlinson, has stepped down from his role effective August 24, 2022 after accepting a new role within a different industry. HEVI is currently seeking a replacement to fill the duties previously performed by Mr. Tomlinson. HEVI wishes Mr. Tomlinson the best in his future endeavours.

Shareholders and other parties interested in learning more about the Helium Evolution opportunity are invited to visit the website which includes an update corporate presentation and are invited to follow the Company on LinkedIn and Twitter for ongoing company updates and helium industry information. Helium Evolution also provides a full, controlled “deep dive” research report prepared by a third party whose experience includes working as a research analyst for several bank-owned and independent investment dealers. In addition to recent Press articles HEVI maintains a profile on Investment News Network platform, where further information, editorial articles and industry reviews are available.

About Helium Evolution Incorporated

Helium Evolution is a Canadian-based helium exploration and production company with the largest helium land rights position in North America among publicly traded companies, focused on developing assets in southern Saskatchewan. The Company has more than five million acres of land under license near proven discoveries of economic helium concentrations that will support increased exploration and development efforts in its territory. HEVI’s management and board are executing a differentiated strategy to become a leading supplier of sustainably produced helium to the growing global helium market, providing an attractive opportunity for investors.

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Statement regarding forward-looking information

This press release contains statements that constitute “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements, or developments in the industry to differ materially from any anticipated results, performance or achievements expressed or implied. implied by these forward-looking statements. . Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “should”, “could”, “might” or “should” occur.

Forward-looking statements contained in this document include statements regarding the Company’s expectations regarding the Company’s exploration program, including the purchase of 3D seismic data and activities related to the farm-out agreement, the increase of shareholder value, the retention of a new CFO and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or other future events, to differ materially from the results, performance or future achievements expressed or implied by such forward-looking statements. These factors and risks include, among others: the Company may choose to postpone, accelerate or abandon its drilling plans; new laws or regulations and/or unforeseen events could adversely affect the Company’s business and results of operations; stock markets have experienced volatility that has often been unrelated to business performance and such volatility may adversely affect the price of the Company’s securities, regardless of its operational performance risks generally associated with the resource exploration and production; the uncertainty of expense estimates and projections; constraint in the availability of services; fluctuations in commodity prices and currency exchange rates; the current COVID-19 pandemic; adverse weather or ice break-up conditions; and uncertainties resulting from potential delays or changes in plans for exploration or development projects or capital expenditures.

When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks as well as other uncertainties and potential events. The Company has assumed that the important factors referred to in the preceding paragraphs will not cause such forward-looking statements and information to be materially different from actual results or events. However, the list of such factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. Readers are cautioned not to place undue reliance on forward-looking information. Such information, although considered reasonable by management at the time it was prepared, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. ‘required.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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