11:18 AM EDT, 09/04/2025 (MT Newswires) -- Avanti Helium ( ARGYF ) , which was up 7.4% on last look, Thursday said it signed a term sheet with a publicly traded U.S. company for the funding, construction, ownership and operation of its Sweetgrass helium recovery plant in Montana. The partner will also buy the plant's remaining available helium output for five years once construction is complete.

The Sweetgrass facility will have an initial design capacity of 10 million cubic feet per day (MMcf/d), scalable to 15 MMcf/d depending on production performance and reservoir analysis. Avanti will pay a monthly fee based on an agreed return on deployed capital.

The arrangement replaces a previously announced midstream partnership that has been terminated by mutual agreement, the company said.

A definitive agreement is expected in the coming weeks. Once finalized, the deal would provide Avanti with a fully funded path to production and revenue generation in 2026. The partner will also hold an option to acquire Avanti's previously constructed Sweetgrass pipeline infrastructure.

"This agreement represents a transformational step forward for Avanti," chief executive officer Chris Bakker said. "By aligning with a well-capitalized, technically capable partner, we are not only accelerating our path to production and cash flow, but doing so with maximum benefit to our shareholders. This structure enables flexibility and scalability while preserving upside in a helium market that continues to strengthen."

Avanti shares were last seen at C$0.29 on the TSX Venture Exchange, up C$0.02.

Price: 0.30, Change: +0.03, Percent Change: +9.26