primary helium company...dec 20, 2020 · •majority of helium produced as a by-product of...
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PRIMARY HELIUM COMPANY
helium-one.com
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DISCLAIMER STATEMEMENTThe information in this presentation is in summary form and should not be relied upon as a complete and accurate representation of Helium One Global Ltd(Helium One) and its various business activities. While management has taken every effort to ensure the accuracy of the material in the presentation, thepresentation is provided for information purposes only. No representation or warranty, express or implied, is or will be made by Helium One or its officers,directors, employees or advisers as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in, or impliedby, this presentation, or as to the reasonableness of any assumption, forecasts, prospects or returns contained in, or implied by, this presentation or any part of it.The presentation may include information derived from third party sources that has not been independently verified. This presentation should be read inconjunction with other technical information and reports prepared by independent consultants for Helium One.
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Helium One andcertain plans and objectives of the management of Helium One. Forward-looking statements can generally be identified by the use of words such as ‘project’,‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. Indications of, and guidance on, productiontargets, targeted output, development or timelines, exploration or expansion timelines, infrastructure alternatives and future financial position and performanceare also forward-looking statements. The forward-looking statements included in this presentation involve subjective judgment and analysis and may cause actualresults to differ materially from those expressed or implied in such statements and are subject to significant business, economic and competitive uncertainties,risks and contingencies, many of which are outside the control of, and are unknown to Helium One. These risks include, among others, change in helium pricesand changes in the economic climate, use, demand and technical changes. If one or more of these risks materializes, or if underlying assumptions prove incorrect,Helium One’s actual results may vary materially from those expected, estimated or projected. Given these uncertainties, you are cautioned not to place unduereliance on forward-looking statements. These forward-looking statements are based on information available to us as of the date of this presentation. Except asrequired by law or regulation (including any future stock exchange listing rules) we undertake no obligation to update these forward-looking statements. Thispresentation is subject to change without notice. Subject to any obligations under applicable laws, regulations or securities exchange listing rules. Helium Onedisclaims any obligation or undertaking to release any updates or revisions to the presentation to reflect any change in expectations or assumptions.
Nothing in the presentation should be interpreted to mean that there has been no change in the affairs of Helium One since the date of the presentation. Thispresentation does not constitute investment, legal, taxation or other advice and the presentation does not take into account your investment objectives, financialsituation nor particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independentassessment of the information contained in, or implied by, this presentation and seek independent professional advice in relation to such information and anyaction taken on the basis of the information.
All dollar figures are in USD unless stated otherwise.
HELIUM ONEA Globally Significant Asset To Resolve A Supply Constrained Market
HELIUM RUKWA RIFT BASIN
MANAGEMENTGLOBALLY STRATEGIC
Finite irreplaceable resource crucial for
technological, medical and industrial applications.
Unrisked Prospective Helium Resource (2U) of 138Bcf. Primary helium : deep gas
source up to 10.6% He with nitrogen.
Track record of exploration, development and operation
in Africa.
Large-scale, high-grade primary helium project.
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WHY HELIUMAn Scarce And Irreplaceable Technology Commodity
USES OF HELIUM
• A colourless, odourless, tasteless, non-toxic, inert, monatomic gas with the lowest boiling point amongst all elements
• Produced by radioactive decay over aeons, deep in the Earth’s crust and mantle
• Cannot be synthesised, manufactured or substituted
• Used helium escapes into space and is lost
• Innovation critical - Essential in modern technologies with major critical and irreplaceable use in the industrial, medical, scientific and technological fields
• Key growth areas in medical, aerospace and computing
MR
I2
0%
4
We
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%
Oth
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14%
Lab
ora
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10%
Lif
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allo
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s8
%
Fib
er
Op
tics
6%
Pu
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%
Le
ak D
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5%
Ele
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on
ics
4%
Oth
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Cry
og
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ics
4%
Bre
ath
ing
3%
Co
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olle
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he
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%
GLOBAL HELIUM GAS MARKET$2.7B in 2018 to $4.5B by 2025
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HELIUM SHORTAGEHe
Supply Shortage – Rising Prices
• 2018 - 5.6Bcf produced vs. global consumption of c.6.3Bcf
• Majority of helium produced as a by-product of hydrocarbons with concentrations typically 0.05-0.35%
• US Federal Helium reserve, a strategic stockpile established in 1925, ceased sales to industrial customers in 2019
• Inelastic byproduct supply cannot meet growing world demand. New primary helium projects are required
• BLM price $280/Mcf – up 135% in final 12 months
• Anecdotal reports of end users paying upwards of $40/l ($1,500/Mcf)
5Source: Edison research, United States Bureau of Land Management, US Geological SurveySource: Edison research, JR Campbell & Associates
MARKET DEMANDHelium Stocks are amongst the best performing stocks of 2020
• As lack of supply becomes apparent, primary helium stocks have averaged +10x from 13th April to 13th October 2020
Desert Mountain Energy(TSX:DME)
Royal Helium(TSX:RHC)
Blue Star Helium(ASX:BNL)
Helium One(AIM:HE1) [TBC]
Licence Area 263km2 2,000km2 665km2 4,512km2
Unrisked Prospective Resource
N/A N/A 2U (P50) 3.02Bcf1U(P90) 0.6Bcf / 3U(P10) 6.4Bcf
2U (P50) 138.0 Bcf1U(P90) 30Bcf / 3U(P10) 521Bcf
Exploration Stage Well testing: Two exploration holes drilled
Target delineation: Seismic and magnetic surveys
Drill Ready Drill Ready
Market Cap 27/10/20 CAD$107.6m CAD$21.9m AUD$32.5 GBP£14.1m (post-listing & £6m capital raise)
6 Month Share Price Performance
$0.160 $1.650+1030%
$0.030 $0.350+1160%
$0.004 $0.042+1050%
N/A
(???)
• 100%-ownership 4,512km2
Project Area
• USD$7.9M exploration and assessment expenditure to 30 June 2020
• Unrisked Prospective Recoverable Helium Resource (2U/P50) of 138Bcf
• Surface helium concentrations of up to10.6%
• Simple logistics to port via Dar es Salaam
OUR HELIUM ASSETSTargeting a Global Scale Helium Province
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TANZANIAEstablished Natural Resources Territory
• 4th largest gold producer in Africa
• Several multinational resource companies operating in country
• Legal system based on English Common Law
• Helium classed as an Industrial Mineral under Mining Act
• 3% Royalty
• 16% Government Free Carry
• Helium One five years operating history in country
• Exploration licences renewed Sept 2020
• Helium One is committed to operating our business in a way
that delivers lasting benefit to the communities and
environments where we work.8
Helium Play GenesisRukwa in the ‘Goldilocks’ zone for helium generation, migration, and trapping
C
D
E
HELIUM GENERATION IN MINERALSRadiogenic alpha decay of uranium and thorium within ancient crust emits a helium (4He) nuclei, forming an abundant volume of stored helium over geological time.
NATURAL FRACTURESRock fracturing provides a mechanism for release of helium-rich water from the deep crust.
RESERVOIR, TRAP AND SEALThe sedimentary rift basin contains the essential components of the helium system. Seismic and well data have provideddetailed information on subsurface structures and strata.
HELIUM THERMAL SPRINGS – RUKWA BASINNumerous thermal springs release bubbles of helium and nitrogen. These active helium surface seepages indicate a prolific system, and demonstrate migration along major fault zones.
B RIFTING OF EARTH’S CRUSTDue to a mantle plume underneath East Africa, crust under Rukwa is ripping apart. The rifting and associated magmatism provides the thermal mechanism to mobilise deep fluid circulation, focusing flow to the near surface along major basement faults.
AB
C
D
E
A
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“The helium-nitrogen gasoccurrence at Ivuna, associatedwith hot saline water, is a strongindicator that the helium isderived from the Precambrianbasement. The likely migrationpathway is via one of the SE-NWtrending faults that cut throughboth the sedimentary and thecrystalline basement in this partof the basin.”
Prof. C Ballentine, Dr. P Barry Oxford University
MULTIPLE DRILL TARGETS & PROSPECTSA Pipeline of Advanced and Early Stage Targets Identified
He
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RUKWA PROSPECTS AND LEADS
Itumbula Springs 8-10% He
INDEPENDENTLY VERIFIED RESOURCEUnrisked Prospective Recoverable Helium Volume (2U) of 138Bcf
• Prospective resources independently verified by Netherland Sewell & Associates International (USA -2016) and by SRK in 2019
• Best-Estimate Unrisked Prospective Recoverable Helium Resource (2U/P50) of 138Bcf
• Risked Prospective Recoverable Helium Resource (2U/P50) of 14.0Bcf – Equivalent to 1.2-1.5Tcf of natural gas at today’s prices*
• Surface helium concentrations up to 10.6%. Typical LNG (secondary) associated helium concentrations are typically <0.3%
• Gas composition mainly nitrogen (N2) with high concentrations of helium & trace levels of hydrocarbons, H2, CO2 and argon
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“Helium One have potential to host a globally significant resource”
*Assuming natural gas price 2.4-2.7/Mcf and He price $250/Mcf
LOW CAPEX DEVELOPMENTModularised Process Plant Technology
TP02
HELIUM OUTLET
N NITROGEN VENT
TP03
RUKWA SUPPLY
TP01
AIR
O2 / CO2 / H2O VENT
H2O OUT
OXYGEN
REMOVAL
CATALYST
AMINE
UNIT
MOLECULAR
SIEVE DEHY
+ CO2 POLISH
INLET
SCRUBBER
W/VANE CATALYTIC
OXIDATION
PROCESS
COLD BOX PSA SYSTEM
HELIUM COMPRESSION
COOLING
OPTIONALDEPENDENT
UPON CO2 IN FEED
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• Clean gas nitrogen (c.90%) helium (c.10%)
• Reduced CAPEX -No need to develop expensive parallel hydrocarbon / CO2
extraction
• 99.999% pure liquid helium in truck mounted containers
• Nitrogen vented to atmosphere
PLANT CAPEX
~$50m
PLANT OPEX
~$15-$20/Mcf* Production 350,000Mcf/year
• Modular construction housed in shipping containers
• Small footprint <1,000m2
2020 DRILLING FOCUSTargeting Discovery Hole in 2021
• Targeting mobilisation Q1/Q2 2021
• Low cost, slim hole exploration
• Target depth 300m – 1200m
• Conventional trap structures defined by re-processed seismic and high resolution gravity gradient data
• Known reservoir / seal stratigraphy
• Reservoir porosity of up to 30%
• High grade surface helium seepages nearby to drilling prospects
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REVERSE TAKE OVER LISTING - AIMAmalgamation of Attis and Helium One
• Transaction as a merger of Attis and Helium One, resulting in listing on AIM
• Timetable:
• Admission Document: 13 Nov
• Attis General Meeting: 25 Nov
• Re-admission to AIM: 4 Dec
• Capital Raise of £6m to finance drilling and infill seismic in Q1/Q2 2021
• Company now fully funded for 2021exploration programme
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£ % Of Enlarged
Attis Consideration
£1,763,799 12.5%
Helium One Consideration
£5,988,834 42.3%
Capital raise £6,000,000 42.4%
Fee Shares £400,586 2.8%
Enlarged Group £14,156,943 100.0%
45+ years of experience in minedevelopment and operations inEurope, Africa and Australia.
Previously CEO of Uramin Inc until its $2.5Bn acquisition. Mr Stalker has raised over $700m for natural resources projects in Africa.
IAN STALKER
Non-executive Chairman
30+ years of experience as a chartered accountant and finance director.
Previously held a number of CEO and CFO positions including as FD for listed companies in London and South Africa
RUSSEL SWARTS
Financial Director
BOARD & MANAGEMENTHighly Experienced Team Focused on Delivering a Successful Helium Project
15+ years of experience as geologist and managing director with focus on bringing projects through exploration and development
Previously Directory of Geology with AMED Funds responsible for investing $450m into African focused exploration
DAVID MINCHIN
Managing Director / CEO
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ROBIN BIRCHALL
Non-Executive Director
20+ years of experience in the financing and management of resource companies.
Experience in remote operations. Currently CEO of Giyani Metal in Botswana.
20+ years of experience in investment banking and as Nomad / Broker advising small and medium size companies.
Expert understanding of AIM regulations and compliance.
SARAH COPE
Non-Executive Director
30+ years of experience as a senior oil and gas executive.
Has held senior positions at Chevron Corporation, PanOcean Energy and as VP Exploration at Orca Exploration where he was instrumental in the development of the Songo-Songo gas project in Tanzania
JAMES SMITH
Non-Executive Director
RISING HELIUM MARKET
• Strategic global implications to resolve a supply constrained market
• Listed primary helium explorers’ share-prices up >10x between April-Oct 2020
• Best-Estimate Unrisked Prospective Recoverable Helium Resource (2U/P50) of 138Bcf. The biggest resource of any listed primary helium explorer
• Drill ready targets with planned mobilization in Q1/Q2 2021
• Management team with a track record of delivering African natural resource projects
• Path to finance via listing on AIM – Dec 2020
He
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PRIMARY HELIUM COMPANY
+44 (0) 20 3978 5320
www.helium-one.com