Helium One Global Ltd has raised £6.43 million to fund a 50% farm-in to the Galactica-Pegasus project and a similar interest in leases of a proven helium fairway in Colorado, USA.
CASH FLOW
The fundraise with Cynosure Capital Pty Ltd was via a 37% discounted direct subscription in a cash box structure for 590,000,000 new ordinary shares, each at 1.09 pence.
On admission, the company’s issued ordinary share capital will comprise 5,905,710,763 ordinary shares, each with one voting right and none held in treasury.
The financing follows June’s £8m raised at a 56.5% discount and February’s £4.7m fundraise at a 30% discount.
Owned by Blue Star Helium, Galactica contains “confirmed discovery wells” in the region flowing up to 6% helium (average of 3%) as free gas, and located close to existing helium infrastructure.
The development project targets the Permian-aged Lyon Sandstone reservoir fairway sealed by the overlying Blaine Formation anhydrite, said Helium One.
“The He is trapped in structural closures developed during Late Palaeozoic rifting, and the CO2 has been introduced into the system from later stage Tertiary volcanic intrusions.”
The company’s internal gross resource estimates, assuming a P50 helium concentration of 3%, are 675 million cubic feet.
Full development will involve the drilling and tie-back of 15 wells, and commissioning of the relevant helium and CO2 processing facilities.
An initial six development wells are planned for Q4 2024, which are expected to be on stream and producing in H1 2025.
The leases are associated with 246 km2 (61,000 acres) in the Las Animas County.
“We are very pleased to have entered into this partnership with Blue Star that allows us to build an expanding global footprint in the helium sector at such a pivotal time,” added chief executive Lorna Blaisse.
“Our projects in Tanzania remain our primary focus, but this development opportunity enables the company to potentially secure near-term cash flow to aid with progressing our Tanzanian asset.”
The acquisition followed an extensive review of several potential projects over the past 12 months in North America and elsewhere.