Helium Evolution Announces $8.3 Million Convertible Note to Fund Soda Lake Helium Production Facility and Drilling Campaign

Core Viewpoint - Helium Evolution Incorporated (HEVI) has secured a strategic financing agreement with ENEOS Xplora Inc. for a convertible note valued at $8.3 million, increasing ENEOS Xplora's total investment in HEVI to $12.8 million, which will support HEVI's operations and growth in the helium sector [1][3]. Financing Details - The proceeds from the convertible note will fund HEVI's 20% working interest in the Soda Lake Facility and support drilling activities in the Mankota area, with operations expected to commence in Q4 2025 [2]. - The financing is set to close on August 29, 2025, and the note is convertible into common shares at a minimum price of $0.205 per share, subject to certain milestones [4][5]. Production and Royalties - HEVI has granted ENEOS USA a gross overriding royalty (GORR) on production from three designated wells tied into the Soda Lake Facility, structured on a sliding scale based on gross sales [6][9]. - The GORR includes 5% of gross sales in the first year, decreasing to 2% thereafter, which aligns with HEVI's production strategy [9]. Strategic Importance - This financing is viewed as a significant step in HEVI's growth trajectory, enhancing its financial foundation and positioning the company as a near-term helium producer [3]. - The Soda Lake Facility is considered a cornerstone project that will provide stable processing capacity and growth opportunities for shareholders [3]. Company Background - Helium Evolution is recognized as holding the largest helium land rights position in North America among publicly traded companies, with over five million acres under permit in southern Saskatchewan [14]. - The company aims to become a leading supplier of sustainably-produced helium to meet the growing global demand [14].