Gold is 2025’s best performer. UBS sees more upside
LONDON - Helium One Global Ltd (LON:HE1H) (AIM:HE1) has been formally awarded a 480km² mining license for its Southern Rukwa helium project in Tanzania, the company announced Friday.
The Tanzania-focused helium explorer, which also holds a 50% working interest in the Galactica-Pegasus project in Colorado, has entered an investment agreement with three institutional investors to raise £10 million (approximately $13 million) to advance both projects.
The company plans to commence further testing at Southern Rukwa in Q4 2025 by re-entering the ITW-1 well and utilizing a downhole Electric Submersible Pump to create artificial lift and increase helium flow rates from the Basement and Karoo intervals.
"The capital raised through this fundraise enables us to advance development of the Itumbula West discovery in Southern Rukwa," said Lorna Blaisse, Chief Executive Officer, in the press release statement.
The fundraise, arranged by Marex Financial, will allow investors to convert the £10 million advance into ordinary shares at a conversion price equal to 80% of the higher of the lowest single daily volume weighted average price during the 10 trading days preceding conversion, or 92.5% of the VWAP for the same period.
Helium One also intends to make available a retail offer of up to £1 million to existing shareholders following a general meeting scheduled for August 5, 2025.
The company plans to allocate £4 million of the funds to the ESP work program in Tanzania, £1 million for annual mining license fees and general administration, and £4.5 million toward the Galactica development in the USA.
The incorporation of the joint venture company, Songwe Helium Ltd, has been completed with directors appointed. The regulatory framework agreements are still being finalized, with the Tanzanian government’s free carried interest agreed at 17%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.