Example of a helium mining operation near Chambers, Arizona. Source: USA TODAY Network via Reuters.
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  • Grand Gulf (GGE) enters agreement with Valence Resources to acquire an additional 30 per cent to increasings its interest in Valence to 55 per cent
  • The company also has the option to earn up to 85 per cent of Valence’s issued share capital by drilling three wells costing US$1.5 million (A$2.1 million) each
  • US-based project partners, Four Corners Helium and Red Dragon Exploration, have elected to receive 85 per cent of the payment in escrowed Grand Gulf shares
  • Total acquisition will cost 90.4 million in fully paid ordinary shares and $400,000 in cash
  • Grand Gulf (GGE) is unchanged at 2.8 cents per share at 11:10 am AEDT

Grand Gulf Energy (GGE) has entered into a binding agreement to acquire an additional 30 per cent of incorporated joint venture company Valence Resources, bringing the company’s current stake in Valence to 55 per cent.

The company also has the option to earn up to 85 per cent of Valence’s issued share capital by drilling three wells costing US$1.5 million (A$2.1 million) each.

As a result of the acquisition, the P50 unrisked Prospective Resource attributable to Grand Gulf at the Red Helium Project has increased to 6.3 BCF.

The US-based project partners, Four Corners Helium and Red Dragon Exploration, have elected to receive 85 per cent of the payment in escrowed Grand Gulf shares.

The total acquisition cost therefore will be 90.4 million fully paid ordinary shares and $400,000 in cash.

The Red Helium Project provides exposure to the burgeoning helium industry in a known helium-producing area.

Grand Gulf (GGE) is unchanged at 2.8 cents per share at 11:10 am AEDT.

GGE by the numbers
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