After the market closed last night Helium One Global (LON:HE1) announced that it is raising a minimum £8.0m, by way of a cashbox placing of 1,600,000,000 new shares at just 0.50p each, a 56.5% discount to the mid-market closing price of 1.15p.
The company, which is based in Tortola in the British Virgin Islands, is exploring for primary helium in Tanzania, is hoping to use the net proceeds of the Fundraise to complete an Extended Well Test on Itumbula West-1 to evaluate commercial flow rates of helium prior to the development phase.
It will also help to provide additional funds for operational contingency.
The company holds prospecting licences across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.
The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country.
The assets lie near surface seeps with helium concentrations ranging up to 10.6% helium by volume.
The company’s project portfolio includes the Rukwa project consisting of 12 prospecting licenses covering an area of approximately 1,899 sq.km located in southwestern Tanzania; the Eyasi project, which include three prospecting licenses covering an area of approximately 807 sq.km located in north central Tanzania; and the Balangida project comprises one prospecting license covering an area of approximately 259 sq.km located in north central Tanzania.
The company serves the technology, science, medicine, and manufacturing industries.
The raising was handled by Liberum Capital and Zeus Capital acting Joint Bookrunners and Axis Capital Markets acting as placing agent.
CEO Lorna Blaisse stated that:
“We are pleased with the response that we have seen during this placing.
These funds will enable us to fulfil the next crucial phase of the Company’s development including the deepening of Itumbula West-1 and the execution of the EWT. Which, combined with the successful award of the Mining License, will allow us to commence development phase for the first helium project in Tanzania.”
