Helium One Secures Mining Licence for Southern Rukwa Project in Tanzania
Why we think this is good
The RNS announcement provides a positive update on Helium One's progress in securing the mining licence for its flagship southern Rukwa project in Tanzania. The company has successfully negotiated the regulatory framework agreements with the Tanzanian government and reached an agreement on the government's free carried interest. The establishment of the joint venture company, Songwe Helium Ltd, is also a positive development. While the news is not a transformational acquisition or a profit upgrade, it represents a significant milestone in the company's development and demonstrates its ability to navigate the regulatory environment in Tanzania.
Key Points
- Negotiations on regulatory framework agreements finalized
- Government free carried interest agreed at 17%
- Joint venture company Songwe Helium Ltd to be incorporated
- Formal award of Mining Licence expected shortly
Summary
Helium One Global (AIM: HE1) has announced that it has concluded negotiations and reached agreement with the Tanzanian Government on the regulatory framework and all documents required to formally award the Mining Licence (ML) for the southern Rukwa helium project. The company will own 83% of the joint venture company, Songwe Helium Ltd, with the Tanzanian government holding the remaining 17% free carried interest. This is a significant step forward for the company's flagship project in Tanzania, which has seen successful exploration drilling and an extended well test demonstrating the project's potential.