Tanzania helium explorer Helium One Global LON:HE1, has received an offer letter from the Mining Commission in Tanzania for the grant of a mining licence for the southern Rukwa Helium Project.
The potential licence will be for an area of approximately 480 square kilometres and will cover all of the southern Rukwa Helium Project in the Momba, Sumbawanga Districts in the southern Rukwa Basin and is consistent with the area that was applied for under the application the miner made originally.
Larger than standard license
The offer of the license follows approval by the Ministry of Minerals in Tanzania who have given the Mining Commission permission to grant a larger than standard license that will enable the southern Rukwa Helium Project to be developed to its full potential.
The offer letter and terms are currently being reviewed by management. Lorna Blaisse, Chief Executive Officer, commented:
“As we continue to drive forward, this achievement for the company marks a milestone in our progress as the primary helium company in Tanzania. This historical moment, for both the company and for Tanzania, is the first ML to be offered for helium in Tanzania and also the first of such a significant size.”
The offer letter of the license is being hailed as an achievement for Helium One, following the discovery at Itumbula West-1 last year. The licence application, which was submitted in September 2024, was accompanied by a feasibility study which outlines the potential of the helium resource in southern Rukwa.
Following approval from the mining ministry in Tanzania, the Mining Commission were able to allow the full 480 square kilometres which was applied for, and which is significantly larger than a standard licence area for conventional mining practices.
Recognition of major helium resource potential
The government of Tanzania obviously recognises that the helium potential in southern Rukwa is geologically unique given the gas in solution play. Helium One has identified extensive faulting mechanisms and fracture networks and by including these in the area it applied for, provides the company with the best opportunity to fully leverage the helium potential.
The offer letter and terms are now under detailed review by Helium One and further announcements will be made in due course, the company said today.
Helium One shares up
At time of writing, shares in Helium One were up 20.45% over the last 30 days, which had addressed most of the losses in the stock over the previous six months. The shares opened in London up 20% and were still up 16% at time of writing.
