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Isn’t the TZ government framework now 50-50 on profits from mining revenue?

Also, I doubt they will be shipping helium tanks to the US from East Africa so I think it’s unlikely to be US strategic investment. Wouldn’t China be more likely?

Then again, I’m sure LB wasn’t attending the Africa Energies Summit purely for fun and she was registered from the SLB presentation (along with Noble)

https://app.frontierenergy.network/widget/event/africa-energies-summit-2024/planning/UGxhbm5pbmdfMTg5NTI4OA==

SLB are very engaged with exploration in Africa, and they might be interested in hydrogen or thermal production (not sure about helium) but it would need to be a $1bn play to fit their energy investment strategy.

Sure, happy to be proved wrong Manifesto

With respect, you simply will not see a surprise ‘rabbit out of the hat’ announcement of a major funding partnership in the application for a ML. HE1’s access to capital is well proven, tens of millions of dollars raised from investment banks and minority shareholding from the likes of Cantor Fitzgerald. You might not like the terms but the track record is significant and has got the job done to this stage. More importantly the study needs to evidence the proven NAV of the discovery, which might then be used as collateral to leverage loan capital etc. HE1 is an early stage company but its streets ahead of some other ventures that have MLs in Tanzania. They also have collateral in the Galactica project, which will quickly multiply as soon as that’s in development (again it evidences a proven track record of raising capital to bring a helium prospect into commercial mining development).

As itemised below, financial capability is evidenced by ‘Evidence of past investment in mining activities (if applicable)’. That is simply evidenced by HE1’s proven record of access to global capital markets as a London listed company. There will be no surprise or pledged funding agreement in the ML application. That comes later.

And HE1 is by far the highest value company on that list

You can’t simply extrapolate future multiple production well flows from the ITW1 well test.

I doubt it to be honest. I think they will RNS an update on successful completion and submission but I doubt they will publish the commercially sensitive study. I imagine it will be edited and presented in summary as a competent person’s report, broker note or investment prospectus. Hopefully the market gets the key points in an RNS at earliest opportunity.

They had to provide proof of concept in Rukwa before their prospecting licenses expired. They appear to have managed that at ITW1. They have a mix of traditional and novel geological plays now. They can model the Karoo trap and seal as a standard reserve, the basement system is more complex. But a mining licence will derisk all the other prospects, which they can go back to over time. It’s possible that Eyasi with its 10% helium seeps might take preference over Tai (which was superseded by Itumbula). They have options anyway but the priority now is to commercialise the company by any means.

HE1 is a London listed company with proven access to global capital markets. If the feasibility report values the NAV convincingly as collateral that should be sufficient.

"There will be a requirement at some stage for further financing, as we move into development, but we certainly won't be able to conclude on that until we have that mining licence granted by the government"

https://youtu.be/s7T5h4qi28c?feature=shared&t=460

They’ve had plenty of time to build relationships with the Minustry and the community, and they have all the data and expertise. I’m pretty confident they’ll get the licence, but LB was also clear in the interview that they would progress finance negotiations after that.

The feasibility study assesses the economic viability of the mining project. There should be geological data, proof of financial capability, technical competence, environmental impact assessment, and a community development plan.

It's important to remember that the prospecting licences for the project expire on 17 September and are not ordinarily renewable. They're issued for an initial 4 years (in 2015), renewed for 3 years and then 2 years (2022). After that they expire and revert to the Government unless there is application for a mining licence. So HE1 is pretty much on the wire in having to progress the licence application now. Assuming they get it they will have another ten years, plus possible renewals, to develop the project but their development plans, funding partnerships etc are all contingent on first getting the licence approval.

HE1 aren't taking a stake in the company, just in the project, and they're not injecting all of the cash up front. There's some front consideration towards what BS have already spent on exploration, but mainly they're undertaking the cost of drilling each of the six development wells to be operated by BS, in return for 50% of the return. I imagine the investment only goes in stages as the project progresses.

...and it's not likely to be 'nodded through' either. HE1 is well known to the Ministry but it isn't a special case. They'll want to consider how it fits with the national mining strategy and with local/regional politics, and consider how much of the pie they want to get involved in themselves. And all the other considerations of doing any business/bureaucracy in Tanzania. HE1 have loads of experience in Tanzania, they know what they're doing and it will probably take as long as they think it will take, by Christmas if they're lucky.

It includes a feasibility study (integrating the latest EWT results) and the Environmental and Social Impact Assessment (which I think is pre-approved before the application). It won't include anything about a JV partner.

Seeing the words Minchin and collapsing well in the same sentence gives me nightmares

And yes Toffers, the TG will not approve any new mining venture that doesn’t return value directly to Tanzania. But on the other hand they are very keen to do so under the 2024-25 mining strategy. HE1 has worked closely with the Ministry for years on this, they will have covered all the bases.