Helium One Global Ltd (LSE:HE1) has officially received a mining licence for its Southern Rukwa helium site in Tanzania and secured a £10 million investment from three institutional investors, marking a major step forward in its plans to develop two potentially valuable helium sources.
The AIM-listed exploration company, which also holds a 50% stake in the Galactica-Pegasus venture in Colorado, said the fresh capital will be used to fund upcoming testing activities in Southern Rukwa and support the U.S. project’s progress toward first gas and initial cash flow by Q4.
In addition to the institutional backing, Helium One intends to launch a £1 million retail offering, giving current shareholders a chance to take part in the company’s fundraising efforts.
The £10 million funding, facilitated by Marex Financial, is structured as an advance that can be converted into equity at the investors’ discretion, using a predetermined discount on the company’s share price. Any portion not converted must be repaid within 12 months—either in cash, shares, or a mix of both.
Chairman James Smith described the raise as “an important step” that will help advance both the Tanzania and U.S. projects toward production and revenue generation.
CEO Lorna Blaisse emphasized the significance of the developments, stating that the mining licence approval and new funding represent “a key milestone” for the Southern Rukwa site, particularly at the Itumbula West discovery.
Now holding a 480km² mining licence and operating under the joint venture Songwe Helium, the company is preparing for further testing in the final quarter of the year. This will involve re-entering the previously drilled ITW-1 well and using an electric submersible pump to initiate artificial lift, increasing gas flow and enabling better measurement of helium content in target rock layers.
The results will inform final planning for development and processing infrastructure. Regulatory details for Southern Rukwa are still being finalized, and a formal signing date remains pending. However, the Tanzanian government has already agreed to a 17% free carried interest in the project.
Meanwhile, the Galactica-Pegasus project in Colorado, operated by Blue Star Helium, is also expected to benefit from the new funding, with initial gas production targeted before the year’s end.
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