Overview
The worldwide helium market is predicted to extend from $4.45 billion in 2022 to $5.03 billion in 2023 at a compound annual progress fee of 12.9 p.c pushed by the rising demand for helium from the healthcare trade. Helium is vital in drugs as a result of this uncommon factor is utilized in numerous methods, one in every of which is as a refrigerant able to cooling the superconducting magnets in MRI scanners. This non-reactive, non-corrosive, non-flammable noble gasoline is just not solely utilized in analysis gear but additionally as an adjunct remedy for sure ailments like COPD, bronchial asthma and bronchiolitis.
Though helium is the second commonest factor on earth, international helium provides are working low. Useful resource firms that offer industries depending on helium ought to discover potential helium reserves and consider knowledge to provide you with a singular technique for growing helium manufacturing.
VVC Sources (TSXV:VVC; OTCQB:VVCVF) engages within the exploration, growth and administration of pure assets – specializing in scarce and more and more precious supplies wanted to fulfill the rising, high-tech calls for of industries akin to manufacturing, expertise, drugs, area journey and the increasing inexperienced financial system.
The corporate’s portfolio features a various set of property and high-growth tasks, comprising: helium and industrial gasoline manufacturing in western US; copper and related metals operations in northern Mexico; and strategic investments in carbon sequestration and different inexperienced vitality applied sciences.
VVC at the moment targets helium reserves within the US by reactivating previous gasoline wells and drilling new wells. In January 2022, the corporate engaged Foreland Working to handle the day-to-day helium operations going ahead. In March 2022, VVC introduced the profitable completion and connection of its first helium properly within the Syracuse Venture. The properly, generally known as the Levens #2, was related to Tumbleweed Midstream’s Ladder Creek Pipeline, which transports gasoline to the Ladder Creek Helium Processing Plant in Cheyenne Wells, Colorado. VVC additional confirmed the presence of helium as much as 1.14 p.c from its second drilled properly within the Syracuse Venture.
VVC additionally acquired the Monarch Venture to additional capitalize on the rising demand for helium as a result of elevated international utilization. The Monarch Venture consists of greater than 1,700 acres of gasoline leases positioned in Greely County, Kansas with six present wells. Minor repairs have been made to 5 of the six wells, restoring electrical energy service, and started producing income from the pure gasoline and helium at low volumes. The main target of this undertaking is the 14 further potential properly places that are conveniently positioned for connection to the Tumbleweed pipeline.
VVC’s helium portfolio reached one other vital milestone with the set up of 14 miles of its inner gathering system pipeline within the Syracuse Venture. The most important infrastructure will seamlessly transport gasoline produced by the corporate’s helium and pure gasoline wells to a close-by processing plant. The milestone will increase the pipeline’s size from 7 to 14 miles and the undertaking’s capability from 50 to 100 wells.
VVC is advancing its Samalayuca copper property in Mexico in direction of manufacturing. The 4,055-acre Samalayuca property is located within the northern a part of Mexico’s Chihuahua state within the Sierra Madre area 60 kilometers southwest of El Paso, Texas. The undertaking can be supported by infrastructure together with an entry highway and an accessible mining workforce.
Gloria is a sedimentary-hosted undertaking with a copper useful resource of 59.4 million kilos, indicated (9.6 million tonnes grading 0.28 p.c copper) and 89.33 million kilos, inferred (14.4 million tonnes grading 0.28 p.c copper). VVC has acquired each environmental and land use change permits permitting the corporate to provoke pilot mining operations at Gloria. The Gloria undertaking is now prepared for pilot mining and may start producing copper, gold and silver inside 9 months of financing. The undertaking is totally permitted.
The corporate additionally has two wholly owned properties in Mexico’s mining-friendly jurisdiction of Cumeral. Each tasks are gold-bearing and are at totally different factors within the exploration course of. VVC Exploration’s Timmins undertaking in Canada is a greenfield undertaking and the one undertaking exterior of Mexico.
VVC Exploration is led by a administration group with a wealth of mining expertise and is supported by a board of administrators with vital affect in each the mining and monetary industries. The administration and board are additionally notably invested within the firm, with the CEO, members of administration and the board of administrators listed as high traders. As an entire, the corporate has a good share construction with over 90 million shares held by the highest 25 traders.
Firm Highlights
- A rising portfolio of helium tasks with the acquisition of Plateau Helium Company, at the moment comprising 69 leases masking 16,371 acres generally known as the Syracuse Helium Venture, over 15,000 acres in Syracuse Extension, and 1,720 acres within the Monarch property.
- The Syracuse Extension Kansas Venture positioned in western Kansas is in proximity to historic wells that examined helium wealthy pure gasoline however have been by no means put into manufacturing, due to low helium and pure gasoline costs at the moment. Up to now, over 10,000 acres have been leased in areas with over 24 wells that have been beforehand drilled, flowed gasoline that examined helium above 2 p.c, after which plugged
- The Syracuse Extension Colorado Venture positioned in Cheyenne County, Colorado, includes 5,607 acres of gasoline leases, with a complete of 26 historic wells that have been beforehand drilled, flowed gasoline that examined helium over 2 p.c after which plugged.
- Flagship copper property in mining-friendly jurisdiction of Mexico with a copper useful resource of 59.4 million kilos and supported by present infrastructure and accessible workforce
- Acquired Monarch Lease, a 1,720-acre helium property that’s positioned within the Byerly Subject in Greely County, Kansas
- Engaged Foreland Working to handle the day-to-day helium operations transferring ahead.
- Efficiently accomplished and related its first helium properly generally known as the Levens #2 within the Syracuse Venture. The corporate confirmed the presence of helium as much as 1.14 p.c.
- Wells Durler 2-21 and Levens 2-31 are at the moment producing gasoline; Hodgson 1-17 and C Double D1-16 are within the completion stage; and Levens 4-31, Spiker 1-17, Weaver 1-15 are being ready for completion.
- Put in fourteen miles of inner gathering system pipeline to move helium and pure gasoline wells to a close-by processing facility.
- Strategic funding in Proton Inexperienced as a part of its carbon seize enterprise. Proton Inexperienced’s focus undertaking, the St. John’s Subject, incorporates 33 billion cubic ft of helium and the power to inject as much as 22 million metric tons of CO2 per 12 months at its main basin.
Key Initiatives
Helium Portfolio
Plateau Helium Company
In January 2021, VVC Exploration acquired Plateau Helium Company (PHC), a Wyoming Company centered on helium exploration and growth, primarily within the western US. PHC’s preliminary goal undertaking is positioned in Kansas and at the moment includes 69 leases masking 16,371 acres generally known as the Syracuse Helium Venture.
Plateau Helium Company engaged Foreland Working to handle the corporate’s helium manufacturing. Foreland Working is a Texas-based upstream oil and gasoline working firm with a long-tenured group that has been working in most of the premiere US basins together with the Barnett Shale, the Marcellus Shale and the Permian Basin.
Syracuse
Syracuse is VVC’s helium undertaking with 16,371 acres of contiguous oil and gasoline leases. The corporate has recognized 15 properly websites within the space with inner estimates of a future useful resource of 75 Bcf of gasoline. Presently, Syracuse has 22 properly websites permitted or at the moment being permitted, every with the potential to provide over 1 billion cubic ft of gasoline.
In 2022, the corporate introduced it efficiently accomplished and related its first helium properly to the undertaking. The properly is named the Levens #2 and was related to Tumbleweed Midstream’s Ladder Creek Pipeline permitting the transport of gasoline to the Ladder Creek Helium Processing Plant in Cheyenne Wells, Colorado. The Levens #2 was efficiently drilled to a depth of two,478 ft and encountered a number of gasoline zones.
Syracuse Extension Colorado
VVC Exploration via its wholly owned subsidiary PHC acquired a brand new gasoline property generally known as Syracuse Extension Colorado, a 5,607-acre property positioned in Cheyenne County, Colorado that features two gasoline wells drilled in 1989-1990 which have been by no means put into manufacturing.
This property is adjoining to a pipeline that’s linked to a close-by helium processing plant. Each wells include methane and helium. On the time of drilling, one properly had examined over 2,000 mcf per day and the opposite, over 3,000 mcf per day, of helium wealthy gasoline. These historic outcomes haven’t been verified by PHC or another unbiased occasion.
SEC has 28 beforehand drilled, examined, and capped – low dry gap danger with common helium concentrations of three p.c. The undertaking is positioned in a comparatively excessive helium focus space and related to a close-by processing plant.
Based mostly on the manufacturing historical past within the space, VVC has an inner restoration estimate of 1.2 Bcf per properly with a possible of constructing as much as 60 properly websites.
Syracuse Extension Kansas
Syracuse Extension Kansas (SEK) is a ten,422-acre property positioned in western Kansas and covers the Morrow reservoir. The Morrow in Kansas was initially an oil play found within the late Nineteen Seventies and early Nineteen Eighties with common helium concentrations between 1.5- to three p.c.
VVC has recognized preliminary drilling places in SEK and is making a growth plan for the realm. VVC estimates a restoration of 1.2 Bcf of gasoline per properly.
Monarch Lease
VVC bought the Monarch Lease in April 2021, bolstering VVC’s means to capitalize on the rising demand for helium, pushed by elevated international utilization. The Monarch Lease is a 1,720-acre property that’s positioned within the Byerly Subject in Greely County, Kansas and contains six previously producing gasoline wells which might be nonetheless related to the Tumbleweed Midstream pipeline. All wells produced each methane and helium. There’s further potential within the deeper zones of this property which VVC will discover.
Copper and Related Metals
VVC’s present copper focus undertaking is Gloria in Northern Mexico which is a number to oxide copper mineralization with a copper useful resource of 59.4 million kilos, indicated (9.6 million tonnes grading 0.28 p.c copper) and 89.33 million kilos, inferred (14.4 million tonnes grading 0.28 p.c copper). The property spans 4,055 acres in Chihuahua State and drilling over the previous two years has outlined a major copper mineralized zone over a 15-kilometer strike.
Gloria offers VVC with a singular publicity to the copper market. Roughly 100,000 tons of artisanal ore piles on website which were excessive graded, hand cobbed (sorted), and could be utilized for pilot/take a look at mining.
Positioned in Central Sonora Mexico is VVC’s 16,622-acre Cumeral gold/copper exploration undertaking. Cumeral covers an epithermal fashion, mineralized gold/silver zone no less than 3.6 kilometers lengthy with geological construction and floor sampling counsel the potential for multi-million ounce gold deposit.
Timmins is VVC’s Canadian Greenfields property with single, nine-unit unpatented claims in good standing. The undertaking consists of 16 claims positioned 48 kilometers east-southeast of the Metropolis of Timmins within the Abitibi area of Ontario, Canada. Timmins can be deemed to be a main goal for volcanic large sulphide (VMS) fashion base metallic exploration.
Carbon Seize
Proton Inexperienced
VVC lately made a strategic funding in Proton Inexperienced, an vitality transition firm poised to grow to be one of many main helium producers and carbon sequestration hubs in North America.
Proton Inexperienced, LLC, is a producer of helium and hydrogen and is constructing out its place as a big carbon sequestration operator in North America. With working management over the St. Johns Subject, a 152,000-acre property in Apache County, Arizona, Proton Inexperienced controls a helium reservoir and carbon storage basin.
Proton Inexperienced’s preliminary undertaking is the St. Johns Subject. The St. Johns Subject is an enormous helium reservoir and immense carbon storage basin positioned in Apache County, Arizona. In depth third-party geological research carried out on the property point out reserves of as much as 33 billion cubic ft of helium in shallow, simply accessible reservoirs. Able to producing one billion cubic ft of helium per 12 months, will probably be among the many most prolific helium manufacturing websites on the planet.
It’s also projected to be among the many largest carbon seize firms in North America, with 22 million metric tons of carbon sequestration per 12 months, and a complete storage capability of over 1 billion metric tons.
Administration Workforce
Terrence Martell – Chairman of the Board
Dr. Terrence Martell is the director of the Weissman Heart for Worldwide Enterprise at Baruch School and the Saxe Distinguished Professor of Finance the place he oversees a myriad of worldwide education schemes and tasks. He’s additionally the chairperson of the College School Senate and an ex-officio member of the board of trustees at The Metropolis College of New York. His space of experience and analysis is worldwide commodity markets.
He’s a director of the Intercontinental Change (ICE) the place he serves on the audit committee and has many roles. He serves on the board of the Manhattan Chamber of Commerce and is a member of their govt committee. He’s additionally a member of the New York Metropolis District Export Council of the US Division of Commerce and a member of the Reuters/Jefferies CRB Index Oversight Committee. Dr. Martell acquired his BA in Economics from Iona School and his PhD in Finance from the Pennsylvania State College.
James (Jim) Culver – President, CEO and Director
Dr. James Culver has spent over 40 years within the fields of commodities, worldwide commerce and commerce finance, holding posts in authorities, academia and the non-public sector. For the final 20 years, he has centered on commodity finance and commodity undertaking finance, primarily in mining and metals and agricultural merchandise. He spent 22 years working in New York Metropolis the place he most lately managed two non-public commodity asset-based lending firms and developed hedge funds to assist their lending actions.
Beforehand, Dr. Culver served as chief economist and director of the Economics and Training Division for the Commodity Futures Buying and selling Fee. He was chargeable for market surveillance and new product approvals. He additionally served for 5 years on the workers of the Committee on Agriculture of the US Home of Representatives. As well as, Culver has been an lively participant in a family-owned and operated enterprise, The Parsons Group Worldwide Training Inc., a for-profit instructional providers firm. He earned his B.Sc. on the College of Tennessee Martin and his MSc. and PhD levels from the College of Tennessee Knoxville.
Andre St-Michel – Senior Guide, Mexican Operations
A Canadian mining engineer and geologist residing in Chihuahua, Mexico, Andre St-Michel has over 30 years of expertise within the mining enterprise with a give attention to mine growth, mill operation, administration and finance. He has spent the final 10 years working in Mexico the place he at the moment serves as President and CEO of Freyja Sources.
From 2003 to 2008, he was a senior govt of Dia Bras (now Sierra Metals), chargeable for its exploration packages and the start-up of its Bolivar copper and zinc mine. From the preliminary start-up of the mine in 2005, manufacturing reached 450 tons per day in 2006 with annual projected revenues of roughly $27 million and money flows of roughly $10 million. Previous to 2003, he served as president of ECU Silver Mining, growing packages and properties within the US, Brazil and Mexico. He holds a level from the Laval College Engineering College and a Grasp’s diploma in Venture Administration from College du Quebec. He’s knowledgeable engineer.
Michael Lafrance – Director and Secretary-Treasurer
Michael Lafrance has been VVC Exploration’s secretary and treasurer and geological guide since December 2012. Since 1980, he has served in comparable roles with many different publicly-traded exploration firms. He’s additionally the company secretary of POET Applied sciences Inc. (previously Opel Applied sciences), a pioneer within the subject of built-in circuits. He’s a graduate of the College of Ottawa.
Kevin Barnes – CFO
Kevin Barnes has served as the company controller and CFO of assorted private and non-private firms during the last 12 years. He additionally served within the position of IT supervisor and senior accountant with Duguay and Ringler Company Providers, a agency which offers company accounting and secretarial providers to publicly-traded firms. He served because the controller of Canada’s Alternative Spring Water, one in every of Canada’s first publicly traded bottled water firms.
He at the moment serves as CFO of Poet Applied sciences, a pioneer within the subject of built-in circuits and Controller of a world coaching institute with revenues of $100 million. Barnes acquired a pc operations diploma from the Careers Improvement Institute and has a Licensed Administration Accountant designation from the ICMA Australia. In 2006, he turned a member of the Institute of Chartered Secretaries and Directors of Canada.
Peter Dimmell – Director
Peter Dimmell is a geologist and prospector who has been concerned in mineral exploration in Canada, the USA and abroad for 38 years. He’s skilled in all points of the mining trade and has guided on-site operations from exploration via to manufacturing. He’s a previous president of the Prospectors and Builders Affiliation of Canada (PDAC), a director and former chairman of the Newfoundland and Labrador Chamber of Mineral Sources and a councilor and member of the Geological Affiliation of Canada. He sits on the Board of Administrators of 4 different public firms: Arehada Mining, Linear Gold, Pele Mountain Sources and Silver Spruce Sources, for which he additionally serves as CEO.
Bruno Dumais – Director
Bruno Dumais is vice-president of finance, for BroadSign Worldwide, a Montreal-based supplier of digital signage options. He possesses over 20 years of expertise in monetary, forecast and strategic planning and is chargeable for overseeing international monetary actions. Earlier than becoming a member of BroadSign, he was the chief monetary officer, vice-president of finance and a guide at Mitec Telecom for seven years. He has additionally held senior stage positions in firms crossing quite a lot of sectors, akin to Gestion Exponent, Nortel Networks and Premier Tech. Dumais is a chartered skilled accountant and holds each a Bachelor in Enterprise Administration from the College of Quebec in Rimouski and an Worldwide MBA from the College of Ottawa.
Patrick Fernet – Director
Patrick Fernet is a authorized, operations, and company governance knowledgeable with greater than twelve years’ expertise in Canadian small-cap public firms. He serves as a guide to VVC on quite a lot of company issues. He has greater than 15 years of governance expertise with small-cap Canadian firms.
Scott Hill – Director
Scott Hill has served as chief monetary officer of Intercontinental Change Inc (ICE) since Might 2007. He’s chargeable for all points of ICE’s finance and accounting features, treasury, tax, audit and controls, enterprise growth, human assets and investor relations. Hill additionally oversees ICE’s international clearing operations. Previous to becoming a member of ICE, Hill was assistant controller for Monetary Forecasts and Measurements at IBM, the place he oversaw worldwide monetary efficiency and labored with all international enterprise models and geographies. Hill started his profession at IBM and held numerous accounting and monetary positions within the US, Europe, and Japan, together with vice-president and controller of IBM Japan, and assistant controller, monetary technique and budgets..
Leon Vijay Shivamber – Director
Leon Shivamber is a change chief with greater than three many years of profitable transformations underneath his belt. He discovered about technique and enterprise integrity throughout his years at McKinsey & Firm, change administration, and speedy transformation throughout his New York Consulting Companions years and high-performance acquisitions throughout his years at Arrow Electronics. He spent 5 years main the prize-winning provide chain and operations transformation on the then Harris Company (now L3 Harris Applied sciences). For 3 years after that position, Leon prolonged and utilized his transformation expertise as a frontrunner and basic supervisor constructing a world three way partnership within the Center East.
Thereafter, Leon spent three years as CEO main the colourful UAE headquartered Atlas Group with strategic companies in communications, protection, vitality, meals, healthcare, hospitality, public security, and safety. He additionally spent two further years advising Atlas Group and different Center-East-based firms on their transformation efforts. Since that point, Leon has returned to the USA and has been appearing as a senior advisor to a number of company transformations. He’s a fellow, Life Administration Institute (FLMI), and a trustee of the board of administrators of Baruch School Fund.
