Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said construction work has started at its Galactica-Pegasus project in Colorado, marking a key step towards its first helium production, which is scheduled for December 2025.
The company, which is listed on London’s AIM market, holds a 50% working interest in the US venture.
Its partner, Blue Star Helium, confirmed that contractors Redbud Partners and PVC began work this week on both the main production facility pad and a network of connecting pipelines, known as the gathering system.
The 120-metre by 150-metre pad will form the base for processing equipment, while access roads are being upgraded to handle heavy machinery. Procurement and delivery of major components are said to be progressing as planned.
The gathering system, which links production wells to the main plant, has been designed to accommodate future expansion. Work has begun at the Jackson-31 well before extending to other sites and finally to the Pinon Canyon processing plant.
Helium One said the project remains on track to produce helium by the end of next year, with the sale of carbon dioxide, a by-product of production, expected to begin in the first half of 2026.
The processing plant is due to reach full capacity as more wells come online during that period.
Helium, a critical gas used in applications from medical imaging to semiconductor manufacturing, is in tight supply globally.
The Galactica project is part of a push by several smaller producers to boost output outside traditional sources such as the US Federal Helium Reserve, which is being wound down.
Panmure Liberum, in a note, said: "This is a key milestone for the JV and RNS states that the project is on schedule for first gas production in December.
"Investors will be reassured that development work continues and will look forward to more newsflow as maiden production nears."
Panmure's target price is 3.7p, an 800% premium to the current share price.
----ADDS BROKER COMMENT----