Chief executive of Highlands Natural Resources (LON:HNR) Robert Price tells Proactive Investors that he is “excited” about the Helios Two helium and gas project in Montana.
The group has received a competent person’s report, valuing the recently leased 60,000 acres at US$341mln.
“The results from the report are pretty significant and we have many opportunities out there,” says Price.
An up-coming agreement with an institution that might be exercising warrants will mean the group is well positioned to be able to commercialise much quicker, says Price.
Paul Mendell of the advisory board speaks to Proactive Investors about the helium market.
“It cannot be substituted,” explains Mendell.
“Helium is used in very special applications, the market is principally semi-conductor manufacturing and cooling for MRI machines, there is really no substitute, you have to have helium. People will pay what they have to.”
The US has dominated the helium industry for the last 100 years and makes up around 30% of the market, but existing storage is rapidly becoming depleted. The primary storage field in Texas is being shut down in 2021.
“It’s really unknown what will happen when that field runs dry,” says Mendell.