Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF, FRA:9K3) told investors it has completed the formal execution of agreements underpinning its southern Rukwa Helium Project mining licence in Tanzania, clearing a key administrative step as it launches a farm-out process for the asset.
A ceremony, held on 2 May in the Songwe region, close to the project, marked the completion of the Framework Agreement and Shareholders’ Agreement with the Government of Tanzania. The licence is held by the newly formed joint venture company Songwe Helium Ltd, in which Helium One has an 83% interest.
Helium One said the Mining Licence is the first helium licence awarded in Tanzania and covers 480km², which it described as the largest mining licence area ever awarded in the country.
The company has also appointed PVE Consulting to lead the southern Rukwa farm-out process. PVE has been mandated to progress discussions with potential industry partners and seek external investment to move the project towards development.
Chief executive Lorna Blaisse called the signing “a historic milestone” for both Helium One and the Tanzanian government, adding that the company is focused on selecting a suitable industry partner for the project.
Southern Rukwa is Helium One’s flagship project in south-west Tanzania and moved into appraisal and development following the 2023/24 drilling campaign, which proved a helium discovery at Itumbula West-1 and flowed 5.5% helium continually to surface during an extended well test in Q3 2024.