Helium One Global Ltd on Wednesday proposed a placing and subscription of new shares to raise a minimum of £5.8 million to fund a second exploration well in the Rukwa basin in Tanzania

The Tanzania-focused helium explorer said each new share would be priced at 0.25 pence, with the total number of shares to be announced ‘as soon as reasonably practicable’ after the close of the bookbuild.

Shares in Helium One Global closed down 14% to 0.77 pence each in London on Wednesday.

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

Helium One Global said the net proceeds of the fundraise will be used for drilling exploration well Itumbula West-A on the Itumbula prospect, alongside general working capital purposes.

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