RE: Peace bonanza14 May 2026 15:51
One potential outcome I’ve been thinking about is a classic “cash + carry” farm-out structure. For example, HE1 could potentially sell around 20–30% of the Songwe project to a larger strategic or industrial partner in exchange for that partner funding most — or even all — of the estimated US$80m–US$120m development capex needed to move Tanzania into production.
From a shareholder perspective, the attraction is obvious. Instead of HE1 trying to raise another £10m–£20m+ through equity at sub-1p levels — which would massively increase the already ~10bn share count — the funding burden shifts onto a partner with deeper pockets and operational capability. HE1 might move from owning 83% of an underfunded project to perhaps 55–65% of a fully funded one, but that could ultimately create far more value for shareholders.
The asset itself has several things that should appeal to a Tier-1 partner: reported helium concentrations of 5.5%–7.6%, a 480km² Mining Licence area, formalised Tanzanian Government participation, and growing global strategic importance around secure helium supply.
The other major benefit is that HE1 itself could then start evolving beyond a single-asset funding story. If Tanzania becomes externally funded, the company can use cash flow and growth from the US operations to strengthen the balance sheet, expand production, and potentially acquire or farm into additional helium projects over time — without constantly returning to shareholders for cash.
That’s why the upside could actually become very significant from here if the right partner is secured. The market would no longer be looking at HE1 as just a speculative explorer surviving through placings, but potentially as a funded helium growth company with exposure to both Tanzania and US production.
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