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(Sharecast News) - Helix Exploration, a company focused on helium exploration and development within the Montana Helium Fairway, announced on Monday that it has entered into a letter of intent to acquire a helium pressure swing adsorption (PSA) processing plant.
The AIM-traded firm said it had made a $0.1m down payment as part of the $0.5m acquisition, representing a significant milestone in its plans to become a leading helium producer in Montana.
It said the PSA plant, previously operated by Xebec, had a proven track record, having produced 48,000 Mcf per year of high-grade helium with 98.5% uptime.
By acquiring the facility, Helix said it would reduce its capital expenditure and accelerate its production timeline compared to building a new plant.
The equipment would initially be installed at Helix's Rudyard Project, further advancing the company's operational capabilities.
Helix added that it was partnering with Wikota Design & Construction for the plant's refurbishment and installation.
"Securing this plant at a fraction of the cost of a new facility represents both a strategic and financial success for the company," said chief executive officer Bo Sears.
"With the plant's demonstrated ability to produce high grade helium and its rapid deployment potential, we can achieve production both faster and more cost effectively than fabricating a new facility from scratch.
"This acquisition underscores our commitment to delivering shareholder value by fast-tracking our Rudyard Project into production while maintaining financial discipline."
At 0820 GMT, shares in Helix Exploration were up 7.47% at 19.34p.
Reporting by Josh White for Sharecast.com.
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