Desert Mountain Energy (TSX-V: DME, OTCQX: DMEHF) is a Canadian-based helium exploration and development company.
The company is well positioned to capitalize on the current global helium shortage due to its high-quality helium projects in the United States. Desert Mountain Energy’s operations are currently focused on exploration and development of helium resources in the prolific Holbrook Basin, Arizona where they control over 100,000 acres of land.
Importantly, the company has just finished raising $23 million in a private placement (at $1.95 CAD/share) and recently completed its work at the McCauley helium processing plant. The major financing has positioned the company to aggressively pursue its expansion in the district, ramp up exploration efforts and work toward bringing Plant #2 online while planning for a third plant.
Helium is an important gas with a wide range of applications, from medical equipment and electronics to space exploration. Despite its importance, helium is a finite resource, and it is becoming increasingly scarce. The United States is the world’s largest producer of helium, and yet it has been experiencing a shortage of this gas in recent years. The current shortage is due to a combination of factors, including the closure of several helium plants, the aging of existing infrastructure, and a decline in helium production.
Desert Mountain Energy is well positioned to benefit from the current helium shortage. The company has high-quality helium projects in the United States, which are strategically located near existing infrastructure. The Holbrook Basin, Arizona, is home to the world’s largest underground helium deposit, and Desert Mountain Energy has been exploring this area since 2018. The company has identified several high-grade helium targets in the Holbrook Basin, and it has already completed drilling and testing of a helium well in the area.
With a significant helium resource base and a strong management team, Desert Mountain Energy is well positioned to become a major player in the global helium market.
Shares are trading near a 52-week low, providing investors with a potentially attractive entry to ride the coming helium boom.
Disclaimer: The author holds no shares at the time of this writing. Hot Stocks Review was not compensated for the article.