Helium One Global raises GBP3 million to help fund Colorado project
Helium One Global Ltd on Wednesday reported the outcome of a recent fundraise, which it expects to help cover the cost of developing its joint venture in the US.
The London-based helium explorer targets Tanzania, and also has a 50% working interest in the Galactica Project which is operated by Blue Star Helium Ltd.
It has raised £3 million through a placing of 1.03 billion shares priced at 0.29 pence each, undertaken by Axis Capital Markets Ltd. An additional 10.3 million shares will be issued at the same price to settle fees related to the placing.
Proceeds from the placing will go towards developing the Galactica-Pegasus project in Colorado, US, as well as to pay for the annual licence fee for the Rukwa project in Tanzania.
At Galactica-Pegasus, which started producing helium in July, the current focus is ramping up capacity and commercialising carbon dioxide alongside helium. Blue Star Helium will look to move the Pinon Canyon plant to 24-hour operations, with full nameplate capacity at the plant targeted by the end of 2027. At full capacity, it is expected to produce about 2,200 million cubic feet of helium and 44,500 million cubic feet of carbon dioxide on a monthly basis, which is equivalent to a combined annual sales volume of 560,400 million cubic feet.
The launch of a carbon dioxide revenue stream is expected in the first quarter of 2027, with plans for further wells to be drilled and tied into the Pinon Canyon plant.
Estimated joint venture projected revenues stand at USD13.8 million to USD34.2 million, depending on gas prices, and before costs. At full capacity, annual operating expenditure is forecast at USD7 million.
Helium One anticipates that the next six wells planned to be drilled in the fourth quarter, and through to the first half of next year, will be funded by the placing, while further drilling in the second half of 2027 will be funded from revenues.
"Further expansion envisages additional wells across Galactica and Pegasus and up to three additional processing plants, each of which would bring the same nameplate metrics," the company noted.
At Tanzania's Rukwa project, the farm-out process is ongoing, with support from advisory firm PVE Consulting Ltd, and several "interested parties... currently active in the data room", Helium One said.
"The objective of the farm-out process is to secure long-term investment to support the next phase of project development, at a time when strategic counterparties are increasingly focused on securing new, longer-term helium supply amid ongoing global supply constraints," it added.
Helium One Global shares were down 22% to 0.31 pence each on Wednesday afternoon in London, and are down 35% over the past year.
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