Desert Mountain Energy Corp. (TSX.V: DME | OTC: DMEHF | Frankfurt: QM01) has announced a strategic agreement with Hethos Ltd. that extends DME's royalty position across the United Kingdom and broader European projects. The agreement also reinforces prior licensing arrangements and grants DME and Desert Energy UK Ltd. the right to participate directly in applicable projects. Investors may be watching closely given the concurrent Arizona lease update, new board appointment, and advancing carbon credit filings disclosed in the same release.

Key Points

  • Desert Mountain Energy Corp. (TSX.V: DME | OTC: DMEHF | Frankfurt: QM01)
  • DME has signed an agreement with Hethos Ltd. extending its royalty position to UK and European projects, with a 5% royalty where DME elects not to participate directly, plus applicable licensing fees
  • Arizona BLM leases previously placed in suspense have been returned to good standing following a multi-year review; leases include acreage offsetting the Pinta Dome Helium Field
  • Investors may watch for updates on Hethos project development, carbon credit filings with Verra and the Climate Action Reserve, and monetisation of proprietary extraction data

Hethos Agreement Extends DME's European Royalty and Licensing Reach

Under the agreement with Hethos Ltd., DME and Desert Energy UK Ltd. will extend their royalty position to projects throughout the United Kingdom and other European markets. Where DME elects not to participate directly in a project, the company will receive a 5% royalty in addition to applicable licensing fees for use of its proprietary helium extraction plant design. DME has also agreed to share proprietary information relating to its U.S. holdings covering both natural and stimulated hydrogen prospects, and the release states that DME will take the lead position on projects currently being developed.

Desert Energy UK Ltd. Adds Board Member and Technical Advisor

The announcement confirms that Michael Hart, former Deputy CEO and Head of Business Development at Amundi, has joined the board of Desert Energy UK Ltd. The release notes that Hart led the development of alpha-driven solutions at Amundi. Additionally, Pierre Levin, who holds credentials in Mining and Geology from Mines Paris, a master's degree in Natural Resource Technologies, and qualifications from HEC, has agreed to serve as an outside technical advisor on stimulated and natural hydrogen production projects in France, the United Kingdom, and the United States. CEO Robert Rohlfing commented on welcoming Hart to the team.

Arizona BLM Leases Reinstated After Multi-Year Review

The U.S. Bureau of Land Management has completed a multi-year review and returned to good standing certain Arizona leases that had previously been placed in suspense due to external concerns. The disclosure states these leases include acreage directly offsetting the north side of the Pinta Dome Helium Field. The company is currently reviewing opportunities to work with another company on the potential development of these properties. No financial terms or timelines associated with any potential partnership were disclosed in the announcement.

Carbon Credit Filings and Proprietary Data Monetisation Under Way

DME Carbon Cap LLC is completing filings related to carbon credit initiatives, including submissions to Verra and the Climate Action Reserve, the release states. Separately, the company says it continues discussions to advance and monetise proprietary extraction data generated through plant operations in nitrogen-rich and methane-rich environments. The company did not disclose timelines or financial values associated with either initiative in the announcement.