(Alliance News) - Helium One Group Ltd has raised GBP10 million through a "significantly" oversubscribed placing and subscription, it said on Friday.
The Tanzania-focused helium miner issued 100 million shares at a price of 10 pence each. It announced that funds will be used to continue the fast-track development programme of its Rukwa project in Tanzania, specifically by keeping drilling equipment to carry out appraisal work following exploration success.
Helium One shares were down 7.1% to trade at 10.87 pence in London on Friday. The stock is up 51% so far this year.
It also intends to carry out seismic studies over any discoveries to maximise conversion to reserves and allow the appraisal programme to be completed by the end of 2021, it added.
"We are delighted to be able to continue the fast-track development of our Rukwa project in Tanzania," said Chief Executive David Minchin.
"The response that we have seen during this oversubscribed fundraise endorses the confidence that we feel in our assets and planned exploration drilling campaign, as well as giving financial support necessary to contract all appraisal work to avoid downtime between any discovery and economic evaluation.
"Helium remains a vital resource, essential and irreplaceable, and which is a crucial component of growing next-generation technology focussed business. We believe our Rukwa Helium project is well placed to become a strategic asset in supplying anticipated zero-carbon primary helium into this demand."
By Will Paige; willpaige@alliancenews.com
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Helium One (HE1)