Helium One Global has raised £6 million to fund infill seismic acquisition and to drill three wells during the first half of 2021 at its Rukwa project in southwest Tanzania.
AMALGAMATION
The £6 million was raised by the conditional placing of 211,267,597 ordinary shares at 2.84 pence per share and was “significantly oversubscribed”.
The company also announced that it had amalgamated with Attis Oil & Gas Ltd and expected to be admitted to AIM in December 2020.
RUKWA
Helium One has identified a “globally unique, large-scale, high-grade, primary helium project” in Tanzania.
The company holds more than 4,500 km2 of exclusive licences comprising four project areas, of which the largest is Rukwa.
Helium One aims to drill appraisal wells to test for helium-rich gas as well as pursue off-take agreements.
Rukwa project has 21 prospects and four leads based on reprocessed seismic lines, high resolution gravity survey, and surface seeps of up to 10.5% helium.
Helium is needed in the medical, technology and aerospace sectors.
GLOBAL IMPLICATIONS
Chief executive David Minchin said that the company had seen significant interest with investor demand of over £8.5 million.
“The £6 million raised in the placing will provide us with sufficient capital to ensure delivery of our aggressive drilling programme.
“This programme will help us prove up what we believe is an asset that has strategically global implications and the ability to assist with the supply of the world’s helium demand for a number of years going forward.”
RESOURCE
The company added that Netherland Sewell and Associates Incorporated (NSAI) estimated unrisked prospective recoverable (P50) helium resources of 98.9bcf at Rukwa.
Scirocco Energy plc has a 13.8% interest in Helium One and is supporting exploration efforts.