Onfolio Holdings, Inc. ONFO has signed a binding Letter of Intent (LOI) with Paramount Helium LLC for a proposed combination that would establish ONFO in the global industrial gas market, valued at approximately $122 billion. As part of the transaction, Paramount Helium has agreed to terms with the secured creditors of Proton Green, LLC to acquire the senior debt position secured by Proton Green's helium and carbon dioxide assets in North America.
Arizona Assets at the Center of the Deal
The proposed transaction focuses on assets located within the St. Johns Unit in northeastern Arizona. According to the company, the resource contains an estimated recoverable volume of more than 20 billion cubic feet of helium, making it approximately 10 times larger than the recently privatized U.S. Federal Helium Reserve and among the largest helium resources in North America.
If successfully developed, the company believes that the project could establish a world-class position in the global helium market while becoming the largest single source of production in the North American merchant carbon dioxide market.
Growing Strategic Importance of Helium
The announcement comes as helium gains increasing strategic significance in the United States. The company noted that recent disruptions to helium production in Qatar, which accounts for about one-third of the global supply, have highlighted the risks associated with the dependence on concentrated foreign sources.
Although helium is not currently included on the U.S. Geological Survey's official critical minerals list, the company said that it is widely regarded by industry participants and policymakers as a strategically important resource due to its role in semiconductor manufacturing, national defense, aerospace applications and emerging quantum computing technologies. Onfolio believes that a domestically controlled resource such as the St. Johns Unit could help address these supply-chain concerns.
Helium-3 Resource Adds Potential Upside
Beyond conventional helium reserves, independent analysis has identified the St. Johns Dome as containing the largest identified terrestrial resource of helium-3, a rare isotope used in quantum computing, neutron detection equipment for tracking nuclear materials, and certain nuclear fusion technologies.
The assessment estimates more than 50 kilograms of helium-3 within the core development area. The company stated that the isotope has an expected sales value of $10-$20 million per kilogram, indicating significant upside in addition to the overall helium resources.
Management Highlights Long-Term Opportunity
Commenting on the agreement, Onfolio’s chief executive officer, Dominic Wells, said that the company is proud to have identified and negotiated the opportunity with Paramount Helium. He added that Onfolio's investor base, Nasdaq listing, clean capital structure and access to capital provide a compelling platform to pursue what the company considers a world-class opportunity.
Wells said that the proposed combination offers exceptional long-term upside as the companies work to unlock the commercial value of the Arizona assets and create sustained shareholder value.
Focus on Commercial Development
Paramount Helium’s chief executive officer, Steven Looper, said that the company intends to build on the foundation established by Onfolio and develop a revenue-generating, cash-flow-positive industrial gas business.
Looper also pointed to potential demand from semiconductor manufacturers with operations in Phoenix, AZ, as well as leading space exploration companies in the western United States. He noted that the project's proximity to these industrial consumers could position the company as a strategic supplier as helium production scales.
In addition to helium, Looper said that the quality, quantity and location of the resources could support large-scale users of food and beverage-grade carbon dioxide in the region. He added that the company's immediate focus is on developing and commercializing the assets.
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