Helium One Global (AIM:HE1) Proposed Placing of a minimum of £5.8 million at a price of 0.25 pence per share

Proposed Placing and Subscription of a minimum of £5.8 million (approximately US$7.4 million) to Fund a Second Exploration Well in the Rukwa Basin

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to announce a proposed fundraise of £5.8 million (approximately US$7.4 million), before expenses, by way of a placing (the “Placing”) and a direct subscription (the “Subscription”) at a price of 0.25 pence per new ordinary share (the “Issue Price”) (together, the “Fundraise”).

The Placing is being conducted through an accelerated bookbuild process (the “Bookbuild”) to be undertaken by Liberum Capital Limited (“Liberum”), and Peterhouse Capital Limited (“Peterhouse”) acting as Joint Bookrunners (together the “Joint Bookrunners”). The Bookbuild will commence immediately following the release of this announcement.

The final number of shares to be issued pursuant to the Fundraise (the “Fundraise Shares”) will be announced as soon as reasonably practicable after the close of the Bookbuild.

The Fundraise will be effected by way of a cashbox placing of new Ordinary Shares in the Company for non-cash consideration, further details of which are set out below. The cashbox placing structure is being used so as to enable the Fundraise to complete as quickly as possible and in any event before the Company commences drilling of the Itumbula West-A well which is currently scheduled for January 2024.

Summary

·    Proposed Placing and Subscription to raise gross proceeds of a minimum £5.8 million (approximately US$7.4 million) (before expenses) at the Issue Price.

·    The Placing will be made to certain existing shareholders and other institutional and high net worth investors.

·    All of the directors of the Company and a member of management have indicated an intention to participate in the Subscription up to an aggregate amount of approximately £18k (approximately US$23k).

·    Issue Price of 0.25 pence per new ordinary share represents a discount of 72 per cent. to the closing mid-market price of the Company’s existing ordinary shares on 19 December 2023, the last practicable date prior to this announcement.

·    The net proceeds of the Fundraise will be used for drilling an exploration well (Itumbula West-A) on the Itumbula prospect, in addition to general working capital purposes.

·    The timing for the close of the Bookbuild and allocation of the Fundraise Shares shall be at the discretion of the Joint Bookrunners, in consultation with the Company. For the avoidance of doubt, the Fundraise is not underwritten.

The Placing is conditional upon, amongst other things, Admission becoming effective and the placing agreement between the Company and the Joint Bookrunners becoming unconditional and not being terminated in accordance with its terms.

Further details of the terms and conditions of the Placing are set out in the Appendix to this announcement (which forms part of this announcement, such announcement and its Appendices together being the “Announcement”).

The Appendix to this announcement (which forms part of this announcement) contains the detailed terms and conditions of the Placing. Members of the public are not eligible to take part in the Placing.

Lorna Blaisse, Chief Executive Officer, commented:

“The Itumbula prospect has always ranked highly in our portfolio. We are confident that the rig will be fully operational again shortly. We’re currently rigging up and due to remobilise a full crew and then we will spud the Itumbula West-A well. With the dataset we have, as well as the information that we have gained from Tai-3, we remain optimistic that this well will yield a very positive outcome.”

For further information please visit the Company’s website: www.helium-one.com   

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