Helium One Global Ltd (LON:HE1), the primary helium explorer in Tanzania, has announced a proposed capital raising of a minimum £7.0 million (approximately US$8.7 million), before expenses, by way of a placing and a direct subscription at a price of 5.0 pence per ordinary share.
The Placing is being conducted through an accelerated bookbuild process to be undertaken by Liberum Capital Limited, and Peterhouse Capital Limited acting as Joint Bookrunners. The Bookbuild will commence immediately following the release of this announcement. The final number of shares to be issued pursuant to the Fundraise will be determined by the Bookbuild and announced upon closing of the Bookbuild.
· Proposed Placing and Subscription to raise gross proceeds of a minimum £7.0 million (approximately US$8.7 million) (before expenses) at the Issue Price.
· The Placing will be made to certain existing shareholders and other institutional investors.
· All of the directors and some management of the Company have indicated an intention to participate in the Subscription up to an aggregate amount of approximately £100k (approximately US$124k).
· Issue Price of 5.0 pence per New Ordinary Share represents a discount of 26 per cent. to the closing mid-market price of the Company’s existing ordinary shares on 12 December 2022, the last practicable date prior to this announcement.
· The net proceeds of the Fundraise will be used for a targeted single well exploration drilling programme of the Tai prospect in the Rukwa Basin.
· The timing for the close of the Bookbuild and allocation of the Placing Shares shall be at the discretion of the Joint Bookrunners, in consultation with the Company. For the avoidance of doubt, the Fundraise is not underwritten.
The Appendix to this announcement (which forms part of this announcement) contains the detailed terms and conditions of the Placing. Members of the public are not eligible to take part in the Placing.
David Minchin, Chief Executive Officer, commented:
“Helium One are poised for growth as we prepare to commence Phase II exploration drilling at Tai. With a drilling rig and related services under MOU for mobilisation in Q1 2023, Helium One offers a fantastic opportunity for investors to gain exposure to the helium sector with a high-grade, exploration prospect ready for drilling.
“Capital raised through the proposed fundraising will allow the Company to progress its Phase II exploration drilling. A discovery made at Tai will help to unlock the value of our entire portfolio and help grow the Company into a strategic player in developing a new supply in this high-value, high-demand, high-tech commodity.”