Member Info for Blubay

“The new investment will fund the development phase of Helium One's operation in the Rukwa rift basin”

No it won’t. It will do what it says in the RNS, it will fund the EWT in Q3 and probably the completion of the feasibility studies and application for a mining licence in Q4, and some company running costs going forward. It will not fund the development phase, for which a much larger investment will be needed, funded either by further raise on a much higher SP, or debt finance against the asset value, or a JV, or a buyout, etc (all to be determined by the results of the EWT and any subsequent analysis). On the plus side, it should get them through to the end of the year and, with luck, confirm the extent of a proven commercial helium/hydrogen resource.

Https://www.proactiveinvestors.co.uk/companies/news/1049592/helium-one-s-8-million-funding-boost-for-itumbula-west-project-1049592.html

What do you think is going to happen? There will be a prospectus based on the EWT results and the feasibility study and that’ll be the basis for the next fund raise to plan the development phase. Hopefully the SP will rise with market confidence to support that ambition.

“should be a regulation that no placing is more than 20% discount imo.”

Don’t be daft, companies would just go bankrupt

I think we can all do without the vitriol and nastiness, it's not appropriate. The interview makes it abundantly clear that the HE1 team are in the same position as any other AIM company with high risk, high capital requirements and zero income in plan. It's pretty clear they are over a barrel, as they were at that very awkward AGM following the earlier raise. Unfortunately, that's the price you pay for listing on AIM and signing over your soul to the NOMADs that swim in that particular shark pool. To succeed as an exploration company you need regular access to risk capital and risk capital demands its pound of flesh. It's brutal on a human level but that's the way it is. They play the piper's tune until they can play their own, or they go bust.

There is absolutely b****r all of any practical use in the quickly assembled presentation linked above

I'd be keen to see a clear presentation from the company of of the current state of play and current plans, with clarity on precisely what is now funded. They have been good on presenting geological information but almost completely void of presenting business information. Shareholders will need greater clarity going forward.

The RNS says:

- "The net proceeds of the Fundraise will be utilised to complete an Extended Well Test ("EWT") on Itumbula West-1 to evaluate commercial flow rates of helium prior to the development phase, as well as providing additional funds for operational contingency."

So, we can assume the EWT is funded (if nothing goes very seriously wrong) but the development phase is not funded.

What work has been completed in the interim, using the funds previously raised? What is the outcome of that work or the status of progress? How has the money been spent, with what results? Where is the report on that?

- "Capital raised through the proposed placing will enable the Company to complete the EWT operations ahead of submitting an application for a Mining License ("ML"). The results of the EWT will be integrated into a feasibility study and submitted, along with the ESIA study and certification, to the Mining Commission. Upon successful award of an ML, the Company will then look to commence the development phase of the southern Rukwa Project."

Is the company fully funded for the application for a Mining Licence, and renewal of any relevant other licences? Is the feasibility study now fully funded? Is the ESIA study and certification fully funded?

What budget scenarios are being considered for the development phase in the feasibility study?

Sorry, to clarify, some of the exploration licence renewals are due 17 September 2024, others in 2025, but all of the renewal options were reviewed and actioned last November.

That's incorrect

Which ‘grapevine’ was that then? 🤣

You will not get the name of a possible “JV partner subject to EWT results”, don’t be ridiculous

“ now that massive raise is out the way production later in the year will send this many bags ..”

Don’t mislead people. There is no prospect of ‘production later in the year’. There might be production before the end of 2025, if the EWT goes well, if the feasibility study is favourable, if the government grant a mining licence, and if they can raise the much larger amount needed to do that.

That's speculative. They will apply for mining licence on the basis of EWT results and the feasibility study, environmental impact study etc. when all of those are complete.

It's not a 'scam', don't be dramatic. That's how AIM works. No company would list on AIM if they could raise capital by any other means, that's the whole point of AIM, to help companies with no capital and no income to raise funds from venture capital speculation and liquid share trading.

"The fundraising was oversubscribed, demonstrating strong investor interest "

If this were ever true on AIM shares then each raise would be followed by a flood of significant holder TR-1 forms, which never happens. AIM fundraises are generally priced to generate strong trader interest not strong investor interest.

Only one or two of those are long term investors. The vast bulk is simple traded for marginal profit

No, everyone knew they were planning an EWT and needed to raise funds for that

Don’t be daft, of course they will sell. They will have sold days ago above 1p

The board have subscribed to as little as they can, purely symbolic and probably under duress. Sarah Cope scraping 400,000 shares @£2k ??

Be very wary of buying above the raise price, it almost always returns close to their post raise on AIM