11th Jun 2025 12:45
(Alliance News) - Helium One Global Ltd on Wednesday said negotiations with the Tanzanian government over the award of a mining licence for its Southern Rukwa helium project have been finalised, paving the way for the launch of a joint venture to develop the site.
Helium One shares were up 20% to 0.97 pence in London on Wednesday afternoon.
The Tanzania-focused helium exploration company said the new venture, Songwe Helium Ltd, will be owned 83% by Helium One and 17% by the Tanzanian government. Songwe's board will consist of five members, three appointed by Helium One and two by the government.
The mining licence will cover 480 square kilometres, and follows an application process initiated last September. The company has already paid an initial USD960,000 in annual rent.
"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 mining licence," said Chief Executive Officer Lorna Blaisse.
The company said all governing documents, including a regulatory framework agreement, shareholders' agreement and the memorandum and articles of association for Songwe, have been agreed. Final approvals and government director nominations are pending, after which a formal signing ceremony is expected.
Chair James Smith called the licence agreement a "pivotal period" in the company's evolution, noting it marks the first mandate granted for helium development in Tanzania.
Helium One also said it will not seek renewal of two prospecting licences that expired earlier this month, citing their remoteness and offshore location.
By Eva Castanedo, Alliance News reporter
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