Helium Evolution’s (TSXV: HEVI) farm-in partner is evidently disinterested in further locking up certain helium assets held by Helium Evolution for its future exploitation. The company this morning formally announced that North American Helium has elected to not select a location for drilling in the McCord area.

Under a seismic review agreement signed last October, North American Helium had the option to select a drilling location in the McCord area until July 31, 2023. Under the agreement, selecting a location would have enabled the company to retain exclusive exploration rights on 5.6 million acres of land held by Helium Evolution until at least October 30.

With North American Helium declining to exercise the option, Helium Evolution will now be able to pursue its own development program for the helium claims. Further details of such a development program have not yet been released.

READ: Helium Evolution Selects Locations Of Next Five Wells

Despite the option not being exercised, North American has committed to spudding at least five wells on claims held by Helium Evolution within the next nine months as part of an ongoing farm-out agreement. The first of those wells has reportedly been spud, with the operator spudding the latest well within Block 1 in the Mankota, Saskatchewan region. North American is responsible for 100% of the drilling costs for the wells, while Helium Evolution retains a 20% working interest.

Helium Evolution last traded at $0.17 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.