Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has confirmed the completion of its farm-in agreement with Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) (ASX: BNL) for a 50% stake in the Galactica-Pegasus helium project located in Las Animas, Colorado.
The deal sees Helium One commit to cover $1.50 million of the costs of six development wells, with drilling slated to commence in the fourth quarter of 2024.
Blue Star Helium will remain the operator of the project.
“We're very pleased to have completed this agreement with Blue Star and anticipate positive results from the upcoming development wells as the project advances into the production phase,” Helium One chief executive Lorna Blaisse said in a statement.
“This project provides Helium One with the opportunity to diversify its helium portfolio and benefit from production and revenue from first helium gas in the first half of 2025.”
She added: "In Tanzania, we await the official approval from the Ministry of Minerals having submitted our comprehensive mining licence application for Helium One's southern Rukwa helium project, encompassing the Itumbula and Tai areas for commercial development.
“We look forward to updating our shareholders and stakeholders in due course."
Separately, in another statement, the company noted the resignation of Russel Swarts from his position as non-executive director, effective immediately.
Helium One chair James Smith commented: "The board would like to take this opportunity to thank Russel for his significant contribution both as a board member and as part of the senior management team and wish him well on all his future endeavours."