Blue Star RNS5 Sep 2024 00:58
ASX ANNOUNCEMENT 5 September 2024
PLACEMENT TO RAISE A$3.0 MILLION
Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) is pleased to advise that it has received firm commitments to raise A$3.0 million in gross proceeds via an institutional placement of 750,000,000 new ordinary shares (New Shares) to institutional and sophisticated investors at an issue price of A$0.004 per New Share (Placement). Participants in the Placement will receive, subject to Shareholder approval, one free option for every two New Shares subscribed for and issued, exercisable at $0.01 and expiring two years from the date of issue (New Options). The New Options will be unlisted.
The Placement was strongly supported by existing sophisticated, professional and institutional shareholders.
Funds raised from the Placement enable Blue Star to advance helium development and exploration evaluation activities across its world-class Las Animas County acreage in Colorado, including the Galactica/Pegasus and Serenity Projects as well as the Company’s continued exploration and acquisition strategy.
Blue Star’s Managing Director and Chief Executive Officer, Trent Spry, commented:
“We are very pleased to have received such encouraging support from existing shareholders. We look forward to an exciting quarter of activity across multiple projects culminating in production early in H1 2025.”
Details of the Placement
The Placement will be completed in two tranches:
• Tranche 1: will be issued pursuant to the Company’s existing issuance capacity with 291,732,794 New Shares issued under ASX Listing Rule 7.1 and 194,488,529 New Shares issued under ASX Listing Rule 7.1A.
• Tranche 2: will consist of 263,778,677 New Shares and 375,000,000 New Options, to be issued subject to shareholder approval at a general meeting expected to be held in October 2024.
Trent Spry, or his nominee, intends to participate in the Placement up to 3,500,000 New Shares and 1,750,000 New Options, subject to the receipt of shareholder approval at the general meeting.
New Shares issued under the Placement will rank equally in all respects with the existing fully paid ordinary shares in the Company.
Settlement of Tranche 1 is expected to occur on Friday 13 September 2024, with quotation of Tranche 1 New Shares expected on Monday 16 September 2024.
Canaccord Genuity (Australia) Limited acted as Sole Lead Manager and Bookrunner to the Placement and will receive a fee equal to 6% of the gross funds raised under the Placement and 93,914,401 New Options.
Blue Star Helium Limited | ASX:BNL | OTCQB:BSNLF
194 Hay Street, Subiaco, WA, 6008
ACN 009 230 835 | info@bluestarhelium.com | www.bluestarhelium.com
Indicative Timetable
Indicative Timetable AEST (2024)
Settlement of Tranche 1 New Shares
Expected quotation of Tranche 1 New Shares
EGM to approve Tranche 2 New Shares, Directors’ Participation and New Options
Friday, 13 September 2024 Monday, 16
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