Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has taken advantage of its soaring share price to raise £4.7 million at 1.5p per share.
At that price, the discount of the placing to the market close yesterday is around 30% but still around eight times higher than two weeks ago when Helium One hit target depth on its Itumbula West-1 well at Rukwa.
Since then, and coupled with the results from the well in Tanzania, Helium One’s value has jumped ten-fold to more than £73 million.
On Monday, Helium One said it had "clearly confirmed" the presence of a producing helium province at the Rukwa Rift Basin in Tanzania.
In its statement today, Helium One said the placing would provide sufficient working capital to progress its planning for the next stage of the work programme in Tanzania following the success of the Tai-3 and Itumbula West-1 exploration wells.
Lorna Blaisse, chief executive, commented: "The results that we have achieved from the Itumbula West-1 well, flowing helium to surface in such significant concentrations, has confirmed a globally unique helium-producing province.
“By moving quickly and finalising this company-led placing early on, we have been able to strengthen our working capital position, which will enable us to fully focus on the next phase of the company's growth."