Helium One has raised £6mln through an oversubscribed share placing as it advances its move to London, and its transaction with Attis Oil and Gas Limited (LON:AOGL).
The placing was significant oversubscribed, Helium said, with attracted strong support seen from institutional and other investors.
It will place 211.26mln new shares at a price of 2.84p each.
READ: Helium One set to join London market in December
Proceeds will be used to fund a seismic programme and a programme of three wells, to kick off in the first half of 2021. Drilling will target the high priority Prospects at the Rukwa project.
Rukwa is host to some 21 prospects and 4 leads with prospective resource estimates to date pencilled in at 138bn cubic feet. It makes Rukwa one of the largest accumulations of helium in the world, potentially holding enough gas to meet global demand for decades.
“We are delighted with the response that we have seen during this oversubscribed fundraise,” said David Minchin.
“We have seen significant appetite to be part of the Helium One story with investor demand of over £8.5mln.”
He added: “The £6 million raised in the Placing will provide us with sufficient capital to ensure delivery of our aggressive drilling programme.
“This programme will help us prove up what we believe is an asset that has strategically global implications and the ability to assist with the supply of the world’s helium demand for a number of years going forward.”
Helium One earlier this month announced it would be listing in London, alongside a transaction to merge with Attis via an amalgamation transition in the British Virgin Islands.
Paolo Amoruso, Attis chairman, in today’s statement, added: “We are delighted with the market reaction that we have seen following our announcement about Helium One and during this placing.
“This endorses our view that this transaction is excellent news for the shareholders of Attis and offers them the opportunity to be part of a company which we believe has very significant potential going forward.”
The transaction will see Attis shareholders receive 1 Helium One share for every 236 shares they presently hold. The merger deal terms value Attis at £1.76mln and Helium One at £6mln.