Helium One Global Ltd on Thursday said it has raised £6.1 million from a placing and subscription of new shares, with the funds to be used for the drilling of the Itumbula West-A well.

The 2.42 billion new shares were sold at 0.25 pence each. The Tanzania-focused helium explorer was down 68% at 0.24p in London on Thursday morning. It has a market cap of £2.3 million, so the new shares will represent two-thirds of its enlarged total of 3.40 billion.

The placing was conducted through an accelerated bookbuild process undertaken by Liberum Capital Ltd and Peterhouse Capital Ltd, acting as joint bookrunners.

The fundraise was comprised of a placing of 2.41 billion new shares to raise £6.0 million, and a subscription of 7.2 million new shares to raise £18,000.

‘These funds are essential and enable us to complete the drilling of the Itumbula West-A well now, whilst we still have all equipment and third party services mobilised. Delaying this fundraise would have significantly impacted the company and its strategy,’ said Chief Executive Officer Lorna Blaise.

‘We’re currently rigging up at Itumbula West-A and performing pre-spud maintenance checks ahead of commencing drilling in early January targeting this exciting prospect. We look forward to providing further updates as appropriate and as we spud Itumbula.’

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