VANCOUVER, BC, May 16, 2024 /CNW/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. The Company is pleased to announce that it has signed a new agreement with Beam Earth Ltd. to commence hydrogen exploration in Arizona, targeting the fourth quarter of 2024. The previously announced agreement dated July 18, 2022 is superseded by the new arrangement. Under the terms of the new agreement, Beam Earth Ltd. will finance the following:
A payment of $225,000 USD to DME within 90 days from the signing date.
Covering all geophysical and associated drilling costs, including the completion of pilot wells.
Engineering for a combined "white" hydrogen/helium plant, leveraging DME's hydrogen separation unit currently located at the McCauley Field in Arizona.
The planning for a "green" hydrogen plant in Arizona.
The planning and engineering for ammonia and loading facilities in New Mexico and Arizona, as applicable.
Conducting geophysical work in Chaves County, New Mexico, focused on "white" hydrogen.
The planning and engineering work for "blue" hydrogen processing/reformation and power generation plants in New Mexico.
DME will be the operator of record for all wells and plants in Arizona and New Mexico. Additionally, the Company will retain 100% rights, titles, and interests for all its currently owned wells in New Mexico, as well as wells #1-4, #6, and #8 in Arizona. DME and Beam Earth Ltd. will jointly share in the hydrogen and helium profits from new wells in Arizona. This partnership also paves the way for DME to process helium from additional potential sources in Arizona, should such opportunities arise.
"As previously emphasized, we remain committed to our Arizona projects," stated Robert Rohlfing, CEO of Desert Mountain Energy Corp. "This agreement offers a non-dilutive growth opportunity, allowing DME to focus on its advanced helium extraction technology and maximize return on investment. With the up-front payment and the planned work extending through Q1 of 2025, Beam Earth Ltd. is expected to invest between CDN $3.6 and $4.3 million before DME incurs more than minimal expenditures."
The total funding by Beam Earth Ltd. in Arizona will be determined by the quantity of "white" hydrogen generated from wells and their decision on the extent of utilizing DME's properties for the most cost-effective production of "green" hydrogen.
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economic manner supplying 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.
