Monday’s updates from Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) are positive, with the firm opening up development in Tanzania and proceeding with its latest well in Colorado, stockbroker Panmure Liberum highlighted in a note.
In a statement, Helium today told investors it has now formally accepted the offer of a Mining Licence for its southern Rukwa Helium Project in Tanzania, marking an important milestone for the project.
The Rukwa licence covers 480 square kilometres in the southern Rukwa Basin – and alongside the licence, the company also has been issued an Environmental and Social Impact Assessment and it has paid the first annual licence fee.
A formal award of the licence will follow in due course, Helium One said.
Whilst no specific timeline details were included, analysts at Panmure Liberum expect that Helium One’s Rukwa project can now start progressing towards production.
“It is a huge achievement for the company to have progressed from flowing first helium to surface in August 2024 - following the extended well test at Itumbula West-1 - to receipt of an ML in just over six months,” chief executive Lorna Blaisse commented.
Separately, in the United States, Helium One said it has spudded the Jackson-29 development well at its 50%-owned Galactica project in Colorado. Following drilling, wireline logging and flow testing will be conducted, and, subject to results, will be tied into production facilities.
Panmure Liberum noted that this is the third well in the current programme, and, like the others, its also targeting the Upper Lyons formation.
“Positive updates from HE1H today, with the company now able to pursue the development of its discoveries on Tanzania – these offer material upside, although new funding will be required to accelerate activity,” the stockbroker said in a note.