Helium One Global Ltd has secured a Government free carried interest of 17% under a new joint venture for its mining licence in the southern Rukwa Rift Basin, southwest Tanzania.
SONGWE
The new joint venture will be incorporated as Songwe Helium Ltd, of which Helium One will own 83%.
The company will appoint three board members and the Tanzanian Government will appoint two.
The company shortly expects the formal award of a mining licence for the 480 km2 project, while regulatory negotiations are also finalised.
Following the offer of a mining licence earlier this year, Helium One has paid the initial annual rent of approximately US$960,000.
“This is a pivotal period in the company’s increasing maturity and growth,” said non-executive chairman James Smith.
“The last 18 months has seen exceptional progress as we have met a series of challenges with vigour and professionalism.
“Getting to this point would not have been possible without the continued support from the Government of Tanzania and I would like to take this opportunity to thank them as well as the local communities where we operate who have helped us and enabled us to deliver this project.
“I think it is a testament to the company, that we are the first to receive a mandate to develop helium in Tanzania, and I look forward to being able to provide further successes as we develop this strategic project.”
Helium One’s relinquished licences of PL 11135/2017 and PL 11136/2017 expired on 1 June.
The company declined to renew them because they are remote and partially offshore.