HyTerra completes $21.9m cornerstone investment by Fortescue Future Industries Technologies

HyTerra (ASX: HYT) will be fully funded for initial exploration at its Nemaha hydrogen-helium project in the US following the completion of a $21.9 million cornerstone investment by Fortescue’s (ASX: FMG) Future Industries Technologies division.

Fortescue has been issued 644 million HyTerra shares priced at $0.034 each and 322 million free-attaching options exercisable at $0.051, becoming HyTerra’s majority shareholder with a total 39.66% equity.

Proceeds from the investment will cover the costs of continued leasing at Nemaha as well as geophysical activities and an expanded drilling campaign targeting additional prospects in several identified geological plays.

Board appointment

HyTerra has named Christine Nicolau to its board of directors as Fortescue’s representative.

Ms Nicolau has been with Fortescue since 2010 and is currently general manager (corporate development) for Fortescue’s operations in Latin America, responsible for critical minerals growth across the region.

She has also been a director of the Canadian-listed company Alta Copper Corp since 2021.

Added value

HyTerra executive director Avon McIntyre said Ms Nicolau’s extensive corporate experience would add value to the board’s skill set.

“We especially note Christine’s demonstrated track record for exploration and project development growth in new ventures, which is a great alignment with the goals of our company,” he said.

“We will be able to utilise her skill set immediately as we look to grow HyTerra’s project portfolio.”

Nemaha progress

HyTerra has confirmed it is making strong progress in preparations for a highly anticipated drilling campaign at the Nemaha “white” hydrogen project.

The project was recently extended to approximately 60,000 acres in Kansas following the successful application for new infill leases totalling 8,000 acres.

The new areas have been subject to significant seismic coverage, providing HyTerra with the confidence to add them to Nemaha.

HyTerra announced today the receipt of three additional well permits at Nemaha the company had sought based on existing and recently purchased gravity, magnetic and seismic data.

Strategic alliance

HyTerra and Fortescue have also executed a strategic alliance agreement to provide a framework for a steering committee to progress Nemaha and explore the potential for additional white hydrogen projects globally.

Fortescue’s cornerstone investment is aimed at supporting further acreage acquisition, along with expanding a planned drilling campaign to target hydrogen and helium discoveries at Sue Duroche-2 and Scott-1.

HyTerra subsidiary Neutralysis and partner Natural Hydrogen Energy LLC are also assessing options for the stalled Geneva project in Nebraska, in which HyTerra currently owns a 16% working interest.