LONDON (ShareCast) - (Sharecast News) - Helium One said in an update on Wednesday that it is close to securing a mining licence for its Tanzanian operations, with final steps underway in the regulatory process.
The AIM-traded company confirmed that negotiations over regulatory framework agreements were being concluded, and that a government free carried interest of 17% had been agreed.

A joint venture company, Songwe Helium, would be formed to hold the licence, with formal execution of documents and the award of the mining licence expected shortly.

"We are delighted to have concluded negotiations and reached agreement with the Tanzanian government negotiations team on all documents and associated agreements that are required to complete the formal award of the ML for the southern Rukwa helium project," said chief executive officer Lorna Blaisse.

"This is the culmination of several years of intense activity and hard work that has included the drilling of several successful exploration wells, the discovery of helium resources, undertaking an extended well test and the filing of the ML application in September last year."

Blaisse said the speed with which the formal application and grant process happened was "a testament to the relationship" the company had built with the Tanzanian government.

"My thanks are also extended to the company staff and contractors who have contributed and worked so diligently on this project and I look forward to further success as we develop this unique project."

Helium One holds a 50% working interest in the Galactica-Pegasus helium development project in Colorado, in addition to its primary exploration activities in Tanzania.

At the close on Wednesday, shares in Helium One Global were up 19.75% at 0.97p.

Reporting by Josh White for Shaerecast.com.

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