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Punter, rather than insulting people why not just answer the question. Is Lorna correct that the project is “now entering the appraisal phase” and do you think her estimate of production approximately 12 months after ML award is positive?

What? I thought Lorna’s 12 months to production was very positive. What are you expecting?

They’ve done the feasibility studies in 2024. They will need to do some appraisal but otherwise good to go with an existing estimate of approximately 12 months from ML award to first production

The trading wall has held pretty consistent at 1.1p but it will fall in the end

Try to stick to the facts. There is not 10.4% helium and the licence will be held at a maximum of 85%.

One step at a time. It’s exactly as expected. The law requires a new company to be established jointly with the government in TZ, giving a minimum of 16% equity (could be more depending on government investment). That new company will operate the project and develop it. Any finance arrangements will be shouldered by the new company, notably with debt from the TZ banks and/or agreement with an off taker. All that comes after establishing the operating company (SPV).

Seven production wells underway in Colorado and a massive mining licence agreement in Rukwa, all looking very good for the transition from explorer to producer.

Great news

BNL entered an agreement with IACX in June 2023, for processing plant installation and hire at the Voyager project, which is accounted as a lease liability in their accounts, I think at $11m over three years with options up to 10 years. No idea if that agreement is transferable Galactica but HE1’s cost-return estimates on the project will already factor in processing, it’s not an extra. The additional consideration at Galactica is that they plan to run the raw gas first through a CO2 extraction plant and then through a helium plant, more income but two processing plants.

The ML offer can include conditions of minimum annual spend to ensure timely project implementation, for example.

No, has to be done individually I think

Anyone who bets their ISA allowance and pension on AIM shares is either lying or certifiable.

Remember the proviso since the refs were amended that the “Government efforts in developing the public infrastructure for servicing a particular joint venture should be considered in negotiating the percentage of Free Carried Interest shares to be issued to the Government over and above 16 percent.” So, the equity share should be in some way proportional to the investment in the project. Similarly the government’s share is worth nothing if it strangles the viability of the project.

Each rise to 1.1p seems to have been quickly sold into so far, so maybe that's been a target price for some. Average daily volume is also only 44m shares, which out of 6bn is never going to move the price much either way, and even the busy days are way off the trading spikes of last year. A lot of people here seem to be holding for the ML announcement so presumably that'll be a sell the news event, which would be normal enough on AIM, and then we'll see how many new investors come in on the back of that for the longer term.

Where did he say this about the licence? I don't see it in the RNS. I can only see where he refers to Colorado and where he adds "We now have a portfolio of two potential near term revenue projects in our portfolio."

I'd be cautious about putting a simple green/red light on the award of ML. A lot depends on the conditions and negotiations shaping the project's risk and return for the company over the next decade. But if the SPV shoulders the debt and mining responsibilities, and HE1 manages to retain say a 50% interest in the net proceeds (like Galactica) then it should still be a very positive outcome. But for me, the real value here is in the company's long term growth strategy, whether they can deliver near to market projects into production and then move on to acquire value in other development projects globally to build a portfolio. To me, that's a more attractive business proposition than the typical AIM 'explorer' route. If they can just get these two projects going then I think they're well placed going forward.

The map was corrected on the BNL ASX news of Jackson 4 spud but somehow still incorrect on the HE1 RNS mirroring that news on the same day. It’s also wrong on the HE1 project webpage. Hopefully their due diligence on the Rukwa ML conditions is better 😉.

Left to right, Jackson 31 - 04 - 02

If you believe that you haven’t been paying attention. It’s an offer of a licensing contact. There will be lots of conditions that permit and limit what the company can do for the next decade and what they’re liable for. There’s the conditions of mineral rights ownership, licence and lease payment conditions, minimum development spend conditions, local content and procurement conditions, environmental conditions, site cleanup and rehab conditions, etc. There are subsidiary contracts and payments to be made.

Might be wrong but my understanding is that it could take some weeks from offer, maybe a couple of months, if there are no major delays with fees or subsidiary agreements to be signed.