Noble Helium Limited has received firm commitments from institutional and sophisticated investors including existing shareholders to raise $13.5 million (before costs).
The Company in a statement said that it had received firm commitments from institutional and sophisticated investors, including existing shareholders to raise $13.5 million (before costs) through a two-tranche placement of a total of 75.0 million fully paid ordinary shares in the capital of the Company (Placement Shares) at an issue price of $0.18 each (Placement).
The proceeds from the Placement will be used to drill the Company’s first exploration well and purchase long lead items for the second exploration/ appraisal well at its North Rukwa Helium Project in Tanzania in Q3 2023.
The contracts for Sofori’s HH102 rig and third-party services can now be finalised for execution, ahead of the rig being mobilised to Tanzania later this month. Our initial target will be to drill and test the Mbelele Basin Margin Fault Closure (BMFC) in September 2023.
Through the outstanding work of our drilling team, the identification of a fit-for-purpose rig, the cost sharing arrangement with Helium One (AIM:HE1) and the simple shallow vertical well designs, the costs to drill and test these wells is considerably less than estimated at the time of starting the farmout process in November 2022.