According to information obtained by City A.M, the ex-CEO of Helium One is set to launch a new exploration firm in London this month.
Helix Exploration aims to be listed on the AIM market in Q2 of 2024, with an initial valuation of £4.27 million and an intended funding goal of about £7 million.
However, sources close to City A.M. have indicated that the investment interest has already reached £22 million.
The company has reported discovering multiple confirmed helium reserves in three locations within the Ingomar Dome area in Montana, USA, estimating total reserves to be between 856 million and 2.3 billion cubic feet.
David Minchin, the former chairman and CEO of Helium One for over two years until 2023, has expressed that it’s now necessary to start large-scale helium production, especially given the high prices due to a supply shortage in the market.
Minchin stated to City A.M. that they’ve chosen London for their listing due to its status as a top market for growing resource companies, citing its vast pool of investors, skilled professionals, and strong governance standards.
He emphasized that London continues to be a leading financial center for small-cap companies and that the timing is ideal for investing in the discovery of new primary helium sources.
During his tenure at Helium One, Minchin was instrumental in securing long-term drilling contracts in Tanzania before he left in February of the previous year.
In 2024, the stock emerged as one of the year’s top performers, soaring 411% to a peak of 2.85p at the beginning of February.
However, over the past year, there has been an 80% decline in its share price, with the current trading value at 1.28p.
Helix Exploration anticipates commencing production in the last quarter of the following year.
The company projects a 12-month period from the initial discovery to the start of gas production, utilizing a processing plant valued between $12-15 million (£9.4m-£11.7m).
