DESERT MOUNTAIN ENERGY CORPORATE UPDATE
Desert Mountain Energy Corp. (TSXV: DME, OTC: DMEHF) provided a corporate update highlighting progress toward production amid a global helium shortage. Key issues include the loss of 25% of helium supply due to a fire in Russia, suspension of production at the Amarillo plant, and supply problems from Algeria and Qatar. The company has set casing in three wells and successfully overturned a court case affecting its operations. With over $18 million in treasury, DME aims for positive cash flow. Upcoming activities include completion of the gathering system and testing of wells by the end of April 2022.
- Successfully overturned legal challenges, enhancing operational security.
- Secured over $18 million in treasury, positioning for positive cash flow.
- Significant shareholder support with over 98% voting in favor at AGM.
- Progress on wells and plans to complete the gathering system by April 2022.
- Global helium supply losses from multiple sources could impact future operations.
- Rising helium prices (300% increase) may affect profitability.
TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, April 5, 2022 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (OTC: DMEHF) (Frankfurt: QM01) From the President of the Company.
As DME continues on its path to production, the Company would like to make an update on the progress through to the start of Q3.
CRITICAL GLOBAL HELIUM SHORTAGE:
1. The Russian Amur Complex fires and explosion has removed a projected source of up to
2. The US Government (BLM) has suspended production at their Amarillo, TX plant that operates and maintains a helium storage reservoir, enrichment plant, and pipeline system. This plant was responsible for over
3. Helium sources from Algeria and Qatar have also had issues.
* Due to this critical shortage, the Specialty Gas Suppliers have declared Force Majeure and cancelled all supply contracts resulting in helium increasing
PATH TO PRODUCTION
· In 2022, DME has set and cemented casing in 3 holes, Wells 5, 6 & 7
- Wells 4, 5, 6 & 7 have outlined the perimeters of the McCauley Helium Field, the Company is confident that we own all necessary leases
- The court case, specifically the Temporary Restraining Order (TRO), launched by the City of Flagstaff has been successfully overturned unanimously by the appellate court in DME's favor
- The AGM confirmed shareholder confidence in the Management and Board over 26 million shares voted over
98% in favor. - The Company still has over
$18 million in the treasury and is confident in achieving positive cash flow without further financing
Q2, 2022
- Completion of the gathering system for wells in the McCauley Helium Field is scheduled to begin at the end of April 2022
- Testing and publishing the results of Wells 5, 6 & 7 is scheduled for the end of April 2022
- The modular buildings that will house the finishing facility have been fabricated and delivered to the contractor. All the materials for the mechanical portion of the processing facilities have been delivered, and assembly of the plant is scheduled to begin by the end of the month. We anticipate delivery of the remaining components of the electronic controls to be delivered by mid-May.
"We continue to move forward on the road to production with our world-class, zero-carbon processing facility," says Robert Rohlfing, CEO of Desert Mountain Energy Corp. "In a world experiencing critical shortages of helium supply, our team is excited to be moving forward and become part of the solution by supplying helium to domestic end-users. We anticipate and look forward to cash flow generation and rewarding our shareholders for their continued support."
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company is primarily looking for elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and the United States; financial risks due to helium prices, operating or technical difficulties in exploration and development activities; risks and hazards and the speculative nature of resource exploration and related development; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
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SOURCE Desert Mountain Energy Corp.
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