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Enlighten me people. Am I missing something? Is this scenario way off the mark?

Thanks Blu,

It's not a last resort, and as stated, the 3 investors will become shareholders of the company - HE1 have cash in the bank to make the repayments in the short term; they are currently debt-free and could have got a bank loan instead.

Lorna said in the interview yesterday, they would ONLY look to dilution where necessary. I think she has a strong moral compass.

Rather than a direct dilution, they have found a better cash-raising route, and it is in everyone's best interests to prove the helium in the Rukwa rift basin. There will be no JV until that happens, and they may be using the raise as a way to accelerate Colorado in any case to maximise the cash generating income over there.

...or maybe a small amount of dilution, along with capital invested by our JV investors, and the Tanz government. The rising share price may see a dip, but when it's on the rise anyway, it wouldn't take long to continue to reach that ATH again. Remember, by this stage, we will be a cash-generating company.

DYOR

I get the impression that no further dilution will occur—am I alone in this thought?

Our investors might become joint venture partners in Rukwa. If the share price increases, they could agree to withdraw cash at a predetermined amount over the next ten years, once income starts being generated. This scenario, along with a low-interest loan from the Tanzanian government, would alleviate the burden of dilution in the market and allow the share price to rise naturally in accordance with the company’s value and resources.

For the investors' cash to be injected into the business and used to place the order for long lead time equipment, doesn't it make sense for the share price to remain low in the run-up to the vote?

Lorna's presentation for Rukwa during the last AGM explained the situation very well. Hopefully, they will do something similar for Galactica.

I can't help but think that they also have around 8 million still in the bank as a float, some of this could be utilised as a top up if required. I felt every confidence that they were planning on remaining in partnership with Blue Star and expand on the current venture (rather than any buy out).

Great bartering tool if the case, as any JV partner then knows they can go alone and don't have to accept a JV offer at a ridiculously high proportion for equivalent value?

Would the issuing of 4,000,000,000 give them enough cash to fund the full production plant in Rukwa? e.i. no JV, just go it alone.

Completely agree with you MCNol.

After listening to the interview I got the feeling that the institutional investors will become the JV partners for Rukwa, and all will be revealed in good time. 👍

Https://www.linkedin.com/posts/davidwhelan1980_education-xr-ai-activity-7353366418798571520-AUV0?utm_source=share&utm_medium=member_android&rcm=ACoAABfDQZUBB4maueVdepD8QITT3_5hWUBx6mk

Posts/davidwhelan1980_education-xr-ai-activity-7353366418798571520-AUV0?utm_source=share&utm_medium=member_android&rcm=ACoAABfDQZUBB4maueVdepD8QITT3_5hWUBx6mk

There are some follow on links to Reddit, where teachers discuss EngageXR being the main platform together with the Hardware being the Quest 3s. All sounds very positive.

...hopefully as a super stock and not in the same way as Sirius is today. Ha...

It's not building an empire yet PubC, give it a decade and it will be a household name! 🏆

Thats nice that LewisKerr's has shared his first post on the HE1 BB. Now off you pop!

Great article Toffers -

This bit may become pertinent-

"Beyond the wells planned for initial production, the joint venture has identified an initial additional six to ten infill and expansion drilling locations at Galactica, based on recent results. A further 20 to 30 potential drilling locations have been identified within the greater Galactica-Pegasus Project area.

In addition, to date, all production wells have been completed within the Upper Lyons Sandstone Formation. Future infill and expansion drilling will consider strategies for accelerating and optimising production from the Lower Lyons Sandstone Formation, in conjunction with the Upper Lyons Sandstone Formation.

The joint venture is currently evaluating the sequencing and prioritisation of future drilling to maximise efficiency, production scalability, and resource recovery."

Could the exta capital be used to fund a 50% expansion of the 20 to 30 lower Lyons sandstone formation. Having access to the capital now certai ly makes use of the remainder of 2025, running the works in parallel rather than back to back!

These are all great questions Blu, I suspect investors will want to know how the money will be allocated before a vote is cast. There's a good chance we'll get another RNS prior to the general meeting to allow time for discussion. The general meeting is on 5th August.

In a perfect world, I would like to see Helium One build a global Helium empire. I can see how huge amounts of cash and company value can be generated initially from both American/Tanzanian resources. Further investment down the line would compound growth and the company can grow vastly over the coming decade.

In reality, a JV or acquisition may present itself and Nishant could be the key negotiator. I suspect it will be a western alliance though, probably not Russia or China. Equinor would be a logical choice, they hold some strategic partnerships globally and particularly in Europe. Time will tell. 🤞

You might be onto something here Toffers.

If a JV or acquisition is being planned, the tell may be the Blue Star outcome. If HE1 buy out the remaining 50% of Galactica rather than continue with the additional 9 wells, this may indicate a deal closure, rather than continuing their partnership.

The next few RNS releases will present the path ahead, revealing the strong investment potential ahead.

Perplexity's summary

Helium One’s projects have become strategically important because they offer a rare, potentially scalable, and geopolitically independent source of a gas now vital for global technology, industry, and medicine—at precisely the time when legacy supplies are faltering and demand is accelerating. This combination creates exceptional commercial, strategic, and potentially acquisition value.