Element One Hydrogen & Critical Minerals Corp. (Element One) has announced that it has entered into a letter of intent (LoI) with Mantle8 SAS (Mantle8), a Grenoble, France-based natural hydrogen exploration company, to evaluate and advance prospective natural hydrogen exploration opportunities in British Columbia and Alberta.
Strategic highlights
- Canadian expansion: the LOI provides a framework for Mantle8 and Element One to pursue natural hydrogen exploration opportunities in Western Canada, initially focused on British Columbia and Alberta.
- Proprietary technology platform: Mantle8 is expected to deploy its advanced technologies for geological modelling, hydrogen-system assessment, prospect generation and 4D subsurface imaging.
- Complementary Canadian capabilities: Element One will manage regional exploration activities, permitting, tenure, field logistics and engagement with Indigenous and local communities and government agencies.
- Project-generation mandate: the parties intend to review geological data, identify priority regions, generate and rank targets, and assess opportunities to acquire, lease or option exploration rights.
- Definitive joint venture contemplated: ownership, funding, governance, earn-in, operator and commercialisation terms remain subject to negotiation and execution of a definitive agreement.
Management commentary
"Mantle8 is the natural hydrogen industry's most technically advanced exploration companies, and its decision to work with Element One in Canada is a significant validation of our team, our regional capabilities and the opportunity we see in Western Canada," said Brad Kitchen, President and Chief Executive Officer of Element One.
"This proposed partnership would give Element One access to an integrated technology platform designed specifically to identify natural hydrogen systems and rank the targets with the strongest potential. Together, we intend to build a disciplined pipeline of exploration opportunities, beginning in British Columbia and Alberta."
“As we expand and diversify our exploration portfolio, Canada stands out for its combination of highly prospective geology, deep technical expertise, established resource-development capabilities and growing hydrogen demand,” added Emmanuel Masini, CEO of Mantle8. “What makes Western Canada particularly compelling is the scale of the opportunity: we see the potential for a play-opening exploration program that could unlock multiple prospects across a vast area, providing a pathway to regional scalability. Element One brings the regional knowledge, operating experience and stakeholder relationships that are essential to exploring responsibly and effectively. By combining these strengths with Mantle8’s technology platform and exploration expertise, we look forward to assessing the potential of Western Canada.”
Next steps
The parties intend to establish a technical working group, identify priority target regions, begin preliminary data review and target generation, evaluate prospective land acquisitions, prepare budgets for land acquisition and local technology deployment, and negotiate a definitive agreement. The initial area of interest is to be determined within 30 days of execution of the LOI and will be limited to non-stimulated natural hydrogen plays.
The LoI provides for an initial 120-day exclusivity period, with an automatic 60-day extension if the parties continue negotiating in good faith and the definitive agreement is substantially complete. It also contemplates a two-year right of first refusal relating to natural hydrogen exploration targets identified during the term of the LOI, subject to the applicable terms and conditions.