Blue Star Helium Ltd (ASX:BNL) (OTCMKTS:AZZEF) has been granted a four-day trading halt by the ASX with a capital raising announcement pending.
Unless ASX decides otherwise, the securities will remain halted until the earlier of the start of normal trading on Monday, November 23, 2020, or when an announcement is released to the market.
The company has a market cap of approximately $41.4 million and shares last traded at 3.9 cents.
Recent resource increase
Blue Star recently announced that the 2U (P50) unrisked prospective helium resource for its Enterprise and Galileo prospects in the US has increased by 16% to total net recoverable helium of 3.5 billion cubic feet (BCF).
Based on the successful recent leasing over prospects that are highly ranked in the portfolio, the company will expand its maiden drilling campaign to a minimum of three and up to five wells.
Timing of the drilling of each new well is subject to the receipt of drilling permit approvals and surface access agreements.
The company has staked Enterprise and is working closely with the regulator to progress permitting.
Drilling approval
Blue Star will be undertaking an immediate site visit to select the additional drilling locations in preparation for selection and well staking.
Drilling approval for newly selected locations is expected in early 2021.
Further leasing opportunities are progressing to consolidate several prospects across the portfolio, including around Voyager, where a further independent resource review is planned