Quantum Helium Ltd (AIM:QHE) confirmed it had received approval from the US Bureau of Indian Affairs for an Irrevocable Letter of Credit that's required for bonding its project.
The company described it as a regulatory milestone for work at its Sagebrush project in Sagebrush project in Colorado, and it looked ahead to its next steps.
Quantum said the steps include the assignment of relevant leases and the formal designation of operatorship, both of which it said are progressing with the BIA. And added that engagement with the BIA has been constructive in recent weeks.
“With this key milestone secured, we are now focused on completing assignment and operatorship and moving efficiently toward the extended production test at Sagebrush," said chief executive Howard McLaughlin.
He added: "We are very pleased to have received BIA approval of the Irrevocable Letter of Credit. This outcome follows a number of highly constructive meetings with the BIA and confirms that the process is now moving forward positively."
McLaughlin added that the company has secured all long-lead items required for the extended production test.
In December, Quantum increased its working interest in Sagebrush to 90% after buying out a minority partner, bolstering its position ahead of a key phase of appraisal and testing.