CALGARY, AB, Oct. 24, 2022 /CNW/ - Avanti Helium Corp. (TSXV: AVN) (OTC: ARGYF) (the "Company") is pleased to announce the closing of its previously announced overnight marketed best efforts public offering (the "Offering") of units of the Company ("Units") at a price of $0.66 per Unit, for aggregate gross proceeds of $6,440,000. Each Unit consists of one common share (a "Common Share") in the capital of the Company and one transferable Common Share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.80 until October 24, 2024. The Agents (as defined below) exercised in full the 15 percent over-allotment option granted to them in conjunction with today's closing of the Offering for a total of 9,757,575 Units sold pursuant to the Offering.

Avanti Chief Executive Officer and Director, Chris Bakker, states, "We thank the syndicate of agents, new investors, our existing shareholders and insiders for their support via this oversubscribed financing.  Our goal is to move forward with an appraisal well at Greater Knappen, which is a key milestone towards production."

The Offering was conducted on a "best efforts" agency basis by Raymond James Ltd., as lead agent and sole bookrunner, on behalf of a syndicate of agents (collectively, the "Agents"), which included Beacon Securities Limited, Cormark Securities Inc. and Haywood Securities Inc.

In connection with the Offering, the Company paid and issued to the Agents in aggregate a cash commission of $450,800 and compensation option units ("Compensation Option Units") to purchase up to 683,030 Units ("Agents Units"). Each Compensation Option Unit is exercisable to acquire one Agents Unit at an exercise price of $0.66.

The net proceeds from the Offering will be used by the Company to fund exploration drilling on the Company's lands and for general corporate purposes.

Insiders subscribed for a total of 545,000 Units for aggregate gross proceeds of $359,700.  The issuance of 545,000 Units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").  The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that the participation in the Offering by the insiders will not exceed 25% of the fair market value of the Company's market capitalization.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Avanti Helium is focused on the exploration, development, and production of helium across western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting untapped potential helium reserves to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries. For more information, please go to the Company's website at www.avantihelium.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

SOURCE Avanti Helium Corp.

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