Helium One (HE1 ) has received an official award of an Environmental Impact Assessment (EIA) Certificate for its planned exploration drilling programme at its Rukwa Project in Tanzania.
Helium, which operates the large-scale, high-grade, primary helium project in Tanzania, said the EIA certificate, which was signed on the 4th May 2021, means that Helium has all necessary permits in place in order to commence exploration drilling in early June.
"We are delighted to have officially received all the necessary permits and clearances to commence our drilling activities. This will allow us to start our maiden exploration drilling campaign as planned in early-June,” confirmed David Minchin, CEO of Helium One.
Helium said the EIA award demonstrates the support of the government for its ongoing exploration in Rukwa and that under the leadership of President Samia Suluhu Hassan, Tanzania is promoting itself as a pro-business jurisdiction seeking external investment.
“President Hassan has publicly declared her support for helium extraction in Tanzania and is working to reduce delays in the development process,” Minchin highlighted to investors.
Shares in Helium One have increased by over 1.5x in value since the beginning of 2021. This morning, the stock was trading 0.82% lower at 18.15p following the firm’s announcement.
Last month, the Company raised £10m at 10p per share to fast-track the Rukwa project and to keep equipment in the field for appraisal work after the drilling programme is completed.
At the time, Helium said that a portion of the proceeds would also allow for the contracting of 3D seismic over any discovery, maximising resource to reserve conversion and allowing completion of the majority of the field appraisal programme before the end of 2021.
Addressing investors, the firm explained that helium remains ‘a vital resource, essential and irreplaceable, and which is a crucial component of growing next-generation technology focussed business.’ Helium believes its Rukwa Helium Project is “well placed” to become a strategic asset in supplying anticipated zero-carbon primary helium into this demand.
"We are grateful to the Honourable Selemani Jafo for concluding the signature of the EIA as one of his first acts since assuming the role of Minister of State (Union and Environment).
Helium One appreciates the continued collaboration and support of the Government of Tanzania, Regional Officials, District and Village Government Councils as we look to deliver our maiden drilling campaign,” he added.
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