Helium One Global Ltd on Wednesday proposed a fundraise of £6.3 million via a placing and subscription of new shares, alongside a retail offer of up to £500,000.

The helium explorer in Tanzania said the shares would be priced at 6 pence each. Shares closed down 0.8% to 6.65 pence each in London on Wednesday.

Helium One said the net proceeds from the two fundraises and retail offer would be used towards drilling a second exploration well, Itumbula-C SE, on the Itumbula prospect immediately after the completion of the current drilling programme of the Tai-C well in the Rukwa basin.

The net proceeds will also be used towards additional licensing fees and general working capital purposes, Helium One said.

‘The company is about to embark on its phase 2 drilling campaign in the Rukwa basin with the drilling of the Tai-C well. With our own Epiroc Predator 220 drilling rig rigged up at site, and with third party services already appointed, we are in an excellent position to be able to move quickly onto a second well ahead of the wet season. This provides us the opportunity to drill another high-ranked prospect in our portfolio, with the anticipation of securing a discovery in 2023,’ said Chief Executive Officer Lorna Blaisse.

‘Capital raised through the proposed cashbox placing will enable the company to drill a second well this year, and at a significant saving without having to demobilise crew, personnel and equipment. This is an opportunity made available to us as a result of the recent rig purchase which otherwise would not have been a financially viable option.’

The placing is being conducted through an accelerated bookbuild process by Liberum Capital Ltd and Peterhouse Capital Ltd.

Helium One said the final number of issues to be issued under the fundraise and retail offer will be announced ‘as soon as reasonably practicable’ after the close of the bookbuild and retail offer.

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