AVANTI HELIUM CLOSES PRIVATE PLACEMENT FINANCING

CALGARY, AB, Jan. 20, 2025 /CNW/ - Avanti Helium Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company") is pleased to announce that it has completed its non-brokered private placement financing of 17,029,998 units of the Company ("Units") at a price of $0.09 per Unit for aggregate gross proceeds of $1,532,700 (the "Offering").

Each Unit under the Offering consists of one (1) common share of the Company (each, a "Share") and one (1) Share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to purchase one (1) additional Share at a price of $0.15 per Share until January 20, 2028.

The net proceeds of the Offering will be used for ongoing costs associated with the Company's projects and general working capital requirements.

In connection with the Offering, the Company paid an aggregate of $31,152 and issued an aggregate of 198,000 Shares and 742,133 Share purchase warrants ("Finder's Warrants") in finder's fees. Each Finder's Warrant is exercisable to acquire one (1) Share (a "Finder's Warrant Share") at an exercise price of $0.15 per Finder's Warrant Share until January 20, 2028. 

All securities issued under or in connection with the Offering, including securities issuable on the exercise thereof, are subject to a hold period expiring on May 21, 2025.

Chris Bakker, the Chief Executive Officer and a director of the Company ("Bakker"), subscribed for and purchased 2,944,444 Units for total consideration of $265,000, and such participation is considered a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the requirement to obtain a formal valuation and minority shareholder approval in connection with Bakker's participation in the Offering in reliance of Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that Bakker's participation in the Offering did not exceed 25% of the fair market value of the Company's market capitalization.

Investment by Chris Bakker

As described above, Bakker, of 1810 - 840 7th Avenue SW, Calgary, AB T2P 3G2, acquired 2,944,444 Units, comprising 2,944,444 Shares and 2,944,444 Unit Warrants, for total consideration of $265,000 pursuant to the Offering.

Immediately prior to the closing of the Offering, Bakker beneficially owned, directly or indirectly, 9,041,980 Shares, 3,904,250 Share purchase warrants ("Warrants") and 712,000 stock options ("Options") of the Company, which represented approximately 9.34% of the issued and outstanding Shares on a non-diluted basis and, assuming the exercise of the 3,904,250 Warrants and 712,000 Options, approximately 13.47% of the issued and outstanding Shares on a partially diluted basis.

Immediately following the closing of the Offering, Bakker beneficially owns, directly or indirectly, 11,986,424 Shares, 6,848,694 Warrants and 712,000 Options, representing approximately 10.51% of the issued and outstanding Shares on a non-diluted basis and, assuming the exercise of the 6,848,694 Warrants and 712,000 Options, approximately 16.07% of the issued and outstanding Shares on a partially diluted basis.

The securities of the Company held by Bakker are held for investment purposes. Bakker has a long-term view of the investment and may acquire additional securities of the Company either on the open market, through private acquisitions or as compensation or sell the securities on the open market or through private dispositions in the future depending on market conditions, general economic and industry conditions, the Company's business and financial condition, reformulation of plans and/or other relevant factors.

A copy of Bakker's early warning report will be available on the Company's profile on SEDAR+ and may also be requested by mail at Avanti Helium Corp., 1810 - 840 7th Avenue SW, Calgary, Alberta, T2P 3G2, Attention: Chris Bakker or phone at [phone].

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any applicable state securities laws. Such securities may not be offered or sold within the United States except pursuant to an effective registration statement under the U.S. Securities Act and the securities laws of any applicable state in the United States or pursuant to an available exemption from the registration requirements thereof.

About Avanti Helium Corp.

Avanti is focused on the exploration, development, and production of helium across western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting helium trapped in structures to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries. For more information, please go to the Company's website at www.avantihelium.com.

Forward-Looking Statements

The information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: statements relating to the expected timing for the development of the helium recovery plant and timing estimates with respect to initial production therefrom, statements relating to the expected benefits to Avanti from the midstream agreement and liquefaction tolling agreement, statements relating to obtaining financing to fund associated infrastructure work for the plant, risks associated with helium exploration, development, production, marketing and transportation, volatility in helium prices, risks relating to the Company's ability to access sufficient capital from production and external sources, risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information. Please see the public filings of the Company at www.sedarplus.ca for further information and risks applicable to the Company.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Avanti Helium Corp.

For corporate and shareholder inquiries, please contact: Avanti Helium Corp., Investor Relations, Phone: [phone], Email: [email protected], Website: www.avantihelium.com