RE:Financing I think they are going to be way higher then DME, from what I read that is pretty small plant, and. the pressure from their wells means you haver to keep drilling a lot of wells to fill up a pant, even a small one. If you look at the size of the pool around their well, its pretty big, reason why I am so excited about the company they literally could be sitting on one of the biggest helium pools ever discovered.
Look at slides 15-19 Boom!
https://avantihelium.com/wp-content/uploads/2022/10/Avanti-Corporate-Presentation-Oct-2022.pdf
I bet they are more like $20mm-$30mm for a facility, but that doesn't worry me to be honest.... They wont be buying or paying for that through equity rasies.... they will either debt finance it or work with a mid-streamer.
gime you really need to look at other junior O&G companies their burn rate is not that bad..... this is big boys game and takes a lot of capital.
I think they have raised $20MM so far over two years (not including this $5MM)
Take $3mm right off the top for all the commissions, lawyers, TSX etc.... they all get thier cuts.
I bet they had to spend at least $5MM USD to acquire all that land in the US. So thats $6.5mm CAD.
Now your down to $10.5mm.
Best guess they spend $3MM USD each to drill their wells thats $7.8mm CAD
These rigs are BIG.... like 30-40 truck loads to move them in... I bet you its $500K just to move the rig which they all make the operator pay for.
That leaves them with $2.7MM CAD for overhead marketing etc over two years its not a lot.
But yes you are right, they are going to need more capital my guess they are trying to get over a hump here and get the results out for the appraial well and then rasie more money.... As you said planning.... why wasnt it done In 4 or 5 months ago? That part is a bit frustrating...