Avanti Helium Corp. has closed an initial drawdown of a secured credit facility for a total face value of US $5 million, equivalent to approximately C$6.88 million, with RiverFort Global Opportunities PCC Ltd.

The transaction delivers US $3.652 million in advanced funds to the company, alongside a US $1 million original issue discount, a US $300,000 implementation fee, and C $65,000 in professional fees. The credit facility matures on March 3, 2028, with non-interest-bearing monthly repayments of US $384,615 scheduled to begin on March 3, 2027. These monthly repayments will reduce the face value of the drawdown and apply proportionately to the funded amount and the original issue discount.

If Avanti elects not to satisfy a monthly repayment in cash, RiverFort may convert the applicable repayment into shares at a floating conversion price determined at settlement, subject to prior approval from the TSX Venture Exchange. Alternatively, RiverFort may demand an accelerated cash repayment of the missed amount within two months, accompanied by an additional 7.5 per cent cash penalty fee.

If RiverFort chooses to convert the funded portion of the initial drawdown, the common shares are issuable at a fixed conversion price of C $0.756, resulting in up to 6,648,412 common shares issuable. In connection with the transaction, Avanti issued 6,370,370 detachable warrants based on 50 per cent of the face value of the drawdown. These warrants are exercisable at C $0.54 and expire three years from the closing date.

Avanti intends to use the proceeds from the initial drawdown to complete the remaining activities required to advance its Montana helium assets, specifically the Sweetgrass Project, toward commercial production. The capital will also be applied to strengthen working capital and support general corporate purposes. Following the completion of these remaining site activities, Avanti expects to be positioned for first helium production.

The securities issued under the drawdown are subject to a four-month and one-day resale restriction from their date of issue. No finder's fees are payable under the credit facility or the initial drawdown.

In a separate corporate update, the company granted 5,450,000 stock options to certain consultants, directors, and officers. These options are exercisable at $0.455 with a five-year term and are subject to certain vesting provisions as determined by the board of directors.

Read the full announcement: Avanti Helium Closes First Drawdown of US $5 Million with Riverfort Global Opportunities