REG - Helium One Global Ld - Update on Southern Rukwa Mining Licence

Helium One GlobalAnnouncement

11/06/2025 07:00

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RNS Number : 2685M  Helium One Global Ltd  11 June 2025

11 June 2025

 

 Helium One Global Ltd

("Helium One" or "the Company")

 

Update on Southern Rukwa Mining Licence

 

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania with a
50% working interest in the Galactica-Pegasus helium development project
in Colorado, USA, provides the following update on the current status of the
award of the Mining Licence in Tanzania.

Highlights

·    Negotiation of Regulatory Framework Agreements being finalised

·    Government free carried interest agreed at 17%

·    Joint Venture company to be incorporated as Songwe Helium Ltd

·    Execution of all documents and formal award of Mining Licence ("ML")
to be completed shortly

 

James Smith, Non-executive Chairman of Helium One, commented:

"This is a pivotal period in the Company's increasing maturity and growth. 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."

 

Lorna Blaisse, CEO of Helium One, commented:

"We are delighted to have concluded negotiations and reached agreement with
the Tanzanian Government Negotiations Team on all documents and associated
agreements that are required to complete the formal award of the ML for the
southern Rukwa helium project.

This is the culmination of several years of intense activity and hard work
that has included the drilling of several successful exploration wells, the
discovery of helium resources, undertaking an extended well test and the
filing of the ML application in September last year. The speed with which the
formal application and grant process has occurred is a testament to the
relationship we have built with the Tanzanian Government, and I would like to
extend my heartfelt thanks to the Mining Commission and also the Ministry of
Minerals for all of their invaluable support.

My thanks are also extended to the Company staff and contractors who have
contributed and worked so diligently on this project and I look forward to
further success as we develop this unique project."

 

Details

Background

The Company received an offer letter from the Mining Commission ("MC") in
Tanzania for the grant of a 480 km(2) ML for the southern Rukwa Helium Project
(as announced 3(rd) March 2025). This was subsequently accepted, and the
Company has since paid the initial annual rent of approximately US$960,000.

Following negotiations with the Tanzania Government Negotiations Team ("GNT"),
agreement has now been reached on the Government back-in percentage and all of
the documentation required in order to conclude the formal ML award process is
being completed.

 

Joint Venture Company

The establishment of a joint venture company is also currently being
concluded. The joint venture company is to be named Songwe Helium Ltd
("Songwe") and 83% of the issued share capital will be owned by the Helium One
(through a subsidiary undertaking) and 17% by the Government of Tanzania.

The board of Songwe will consist of five members, three of which will be
appointed by the Company and two by the Government.

 

Governing Documents

The negotiation of all relevant agreements has been concluded and these
comprise a Regulatory Framework Agreement, a Shareholders' Agreement, the
Memorandum and Articles of Association of Songwe and a jointly agreed economic
model.

The Company is currently waiting for final approvals and the names of the
Government-nominated directors of Songwe and upon notification, the executable
versions of all documents will be prepared, and it is expected that a formal
signing ceremony will then occur.

The Company is in the process of determining the next steps in the development
programme and will announce these as well as the date of the signing ceremony
as soon as possible.

 

Relinquished Prospecting Licenses

On 1(st) June 2025 Prospecting Licenses PL 11135/2017 and PL 11136/2017
expired. In light of the remoteness of these licences and the fact that they
both partially offshore, the Company has decided not to seek further renewal.

 

For further information please visit the Company's website: www.helium-one.com
(http://www.helium-one.com)

 

 

Contact

 Helium One Global Ltd                                         +44 20 7920 3150

 Lorna Blaisse, CEO

 Graham Jacobs, Finance and Commercial Director

 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 20 3100 2000

 Scott Mathieson

 Nikhil Varghese

 Zeus Capital Limited (Joint Broker)                           +44 20 3829 5000

 Simon Johnson

 Louisa Waddell

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian-Neal

 

Notes to Editors

Helium One Global, the primary helium explorer in Tanzania with a 50% working
interest in the Galactica-Pegasus helium development project in Colorado, USA.
The Company holds helium licenses within two distinct helium project areas,
across two continents. With an expanding global footprint, the company has the
potential to become a strategic player in resolving a supply-constrained
helium market.

The Company's flagship southern Rukwa Project is located within the southern
Rukwa Rift Basin in south-west Tanzania.  This project entering a full
appraisal and development stage following the success of the 2023/24
exploration drilling campaign, which proved a helium discovery at Itumbula
West-1 and, following an extended well test ("EWT"), successfully flowed 5.5%
helium continually to surface in Q3 2024.

Following the success of the EWT, the Company filed a Mining Licence ("ML")
application with the Tanzania Mining Commission in September 2024. The
480km(2) ML has now been offered to the Company and was officially accepted in
March 2025.

The Company also owns a 50% working interest in the Galactica-Pegasus helium
development project in Las Animas County, Colorado, USA. This project is
operated by Blue Star Helium Ltd (ASX: BNL) and has successfully completed a
six well development drilling campaign in H1 2025. The completion of the
development programme is a key component of the broader Galactica-Pegasus
development strategy; aimed at progressing the helium and CO(2) discoveries to
near-term commercial production.

This programme has seen a systematic approach to developing the extensive
Lyons Formation reservoir. The programme has delivered encouraging results, in
line with expectations, consistently encountering good helium (up to 3.3% He)
and CO(2) concentrations in the target formation and demonstrating promising
flow potential. The next steps will see the Galactica wells tied into initial
production in Q4 2025.

Helium One is listed on the AIM market of the London Stock Exchange with the
ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

 

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