Helium One Global delivered another kick in the teeth for long-term investors on Wednesday after raising £3m through a share placing to fund development of its Colorado helium project and cover licence costs in Tanzania.
The AIM-listed explorer issued more than 1 billion new shares at 0.29p each, a significant discount to yesterday’s share price and near multi-year lows for the stock.
Helium One shares were down 22% at 0.3p at the time of writing. The price had been above 0.5p in early October.
with the money going towards its 50%-owned Galactica-Pegasus project in the US, where production began in July, and the annual mining licence fee for its Rukwa project in Tanzania.
At Galactica-Pegasus, Helium One said its partner and operator, Blue Star Helium, is ramping up the Pinon Canyon processing plant toward round-the-clock operations, targeting full capacity by the end of 2027 using up to 15 wells. The company plans to drill three more wells this quarter, funded by the placement, with further drilling planned from revenues. The operator is also targeting a new revenue stream from carbon dioxide, produced alongside the helium, from early 2027.
In Tanzania, Helium One said it is still seeking a partner for its Rukwa project, with interested parties reviewing its data, as it looks to secure investment to fund the next phase amid tight global helium supply.