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“ Reasonable results, but we have no money to progress any further.”

They’ve literally just raised £8m to fund six we’ll drills in the next six months?

They are financed to drill six wells in Colarado in the next six months, leading to a commercial helium revenue stream, while they wait for a mining licence in Tanzania. What more do you want?

10 June RNS

"Following the completion of the proposed Fundraise, the Company will be fully funded to complete the EWT, with a working capital runway for a minimum of 12 months from the date of Admission."

June RNS

Why would there be a placing this week IA? It makes no sense. They don't need a placing. They have raised the funds for the operational development in Colarado, while waiting for the mining licence process in Tanzania. They also have the working capital to sustain their negotiations about commercial development of the Rukwa project. They've already funded completion of the feasibility studies, environmental studies and well testing needed to prepare for that.

"no new operational activity until the middle of 2025? I can't see that being the case. "

The key operational activity for the next six months is drilling six wells at Galactica which is fully funded by last week's raise. In addition, the company's working capital is also fully funded until end of Q2 next year from the June fund raise. Obviously they need finance for further development at Rukwa at some point in 2025, after they get a mining licence, with or without a partner, we've been over that many times. But for near term activity they are fully funded up to the point of having an initial revenue stream during early 2025.

In the past week the company has confirmed its discovery of a globally significant helium project in Tanzania. It has also acquired a half share in a helium discovery in the USA, which is also fully funded for commercial development. It is already fully funded with working capital until the middle of 2025, and it has announced an income stream starting before that money runs out. What more do you want?

Someone should really pin this post to the top of the discussion

For the sake of clarity and repetition, they have "a working capital runway for a minimum of 12 months" up to their year ending Q2 2025, and they have a projected income stream starting from before the end of Q2 2025

To be fair, they are simply making it up in order to spread fear and doubt in the market. They know full well the company has enough funding to play a decent hand in any negotiations with prospective partners, and they have the diversification and near-term revenue from Galactica. They would of course need huge capex investment to develop Rukwa, and any partner needs to know if that is feasible legally, logistically and economically (which we should learn from the mining licence application and approval).

"No one risks that amount of money if this is a duster."

It's not a duster, it's what was expected, the EWT confirms a helium discovery and derisks Rukwa as a significant global helium project. The Galactica project is also derisked with funding in place for its rapid commercial development. The share price volatility today is more the unexpected raise, and about price risk going forward, based on market uncertainties (real or wilfully imagined) about further fund raising or/and the real commercial value and timescale of the Rukwa discovery. There's all sorts of possible news flow between now and the mining licence application in two weeks, but it's uncertain. Shorters rush towards any uncertainty in AIM shares, and investors are more likely to pause unless they see a bargain.

The two relevant prospecting/exploration licences were already extended for 24 months in 2022.

Yes, I think that's more likely than the commercially sensitive economic modelling and engineering feasibility

They won't be publishing it to market before it's submitted to the Ministry. I imagine it would then be translated into a competent person's report or prospectus/presentation to promote the development phase

"You wouldn't submit a mining licence application if you were not moving forward with the project. "

They have to submit it or their current exploration licences at Rukwa would expire on 17 September. They fund raised for the six months process of preparing the application, and they've made the discovery needed to underpin it. But we do need to see summary of the modelling and the feasibility study, which should be in final preparation.

Next RNS is more likely to be a TR1 from Spreadbet judging by the level of discussion this morning

So if Itumbula West 1 (Rukwa project) is capable of flowing about 6,000 scf/d (at an average of 5.5% helium, in 90% nitrogen gas, from fluid) is that comparable with the State-16 development well (Galactica project) already flowing around 5,500 scf/d (1.9% helium, at 285 Mcfd with 70% CO2, from free gas) before development enhancements? Or have I misplaced a decimal somewhere? Or is any comparison just apples and oranges at this point?

"Why the importance of blue star doing a raise?"

Because the size and success of Blue Star's fundraise will affect the level of confidence in achieving the near term commercialisation goals of the Galactica project, in which HE1 will be a 50% beneficial owner.

Because the current news trading cycle is now over and everyone who was waiting for multibags sold to preserve more realistic gains. Now we start over again with trading the next anticipated news on the feasibility study and mining licence application due in a couple of weeks, versus those who fear further fund raising dilution. Basically, back to where we where we were at an £80m valuation with discoveries in two helium fields (one now fully funded for commercial production and one pending licence approval for development).

Freddie, as you know the environmental impact assessment is a key part of the statutory package that they have been working on for six months prior to submitting the mining licence application. The EIA part of it has to be pre-approved by the official agency before they can submit the rest, so it looks as if that's probably done.