Regulatory Announcement on Investment and Development Plans
Helium One Global, a prominent helium exploration company in Tanzania, has made a significant regulatory announcement regarding its operations. The company, which holds a 50% stake in the Galactica-Pegasus helium project located in Colorado, USA, has received formal approval for its Southern Rukwa Mining Licence. This announcement outlines the company’s investment agreement with three institutional investors that is intended to raise £10 million (approximately $13 million) to support further operational phases in both Tanzania and the United States. Additionally, existing shareholders will have the opportunity to participate in a proposed retail offer amounting to £1 million.
Key Developments at Southern Rukwa
The Southern Rukwa Mining Licence has been officially granted, allowing the company to initiate a new testing program aimed at advancing its development efforts. Plans are in place to commence these operations in the fourth quarter of 2025. The fundraising initiative of £10 million is set to enhance project development in Southern Rukwa as well as to support the Galactica helium-CO2 project in the US, which is expected to reach first gas by the end of this year. Shareholders will soon receive details on how they can participate in the retail offer.
Leadership Insights on Fundraising
James Smith, the Chairman of Helium One, emphasized the company’s current non-revenue generating status while highlighting its substantial interests in two significant helium development projects. He described the upcoming fundraising as a crucial step that will expedite both projects towards production and cash flow. Lorna Blaisse, the Chief Executive Officer, elaborated on how the funds will facilitate the development of the Itumbula West discovery in Southern Rukwa. She noted that the awarded Mining Licence allows for enhanced testing utilizing a downhole Electric Submersible Pump to better assess helium concentrations.
Southern Rukwa Project Update
The company has successfully secured a 480 km² Mining Licence in the Southern Rukwa area and has formed a joint venture company, Songwe Helium Ltd, with directors now appointed. Although the Regulatory Framework Agreements are still being finalized, the government’s free carried interest has been set at 17%. With the Mining Licence in place, the company plans to execute further testing using advanced technology to improve helium flow rates and gather critical data for development.
Details of the Fundraising Agreement
The investors involved in the £10 million funding agreement have the option to convert their advances into ordinary shares at their discretion. The conversion will be based on a price that reflects a discount to the average trading price of the company’s shares during a specified period. The company must repay any unconverted advances within a year, with provisions for cash or shares. If any default occurs, the outstanding amount will become immediately due, accruing interest. This funding will support ongoing projects in both Tanzania and the US, along with general working capital needs.
Retail Offer for Shareholders
Helium One is preparing to offer existing shareholders the chance to participate in a retail offer of up to £1 million shortly after the upcoming General Meeting. This offer will follow a similar pricing structure to that of the investors in the investment agreement. The capital raised from this initiative will be allocated for general operational expenses.
Notice of General Meeting
A notice has been issued for a General Meeting set for 11:00 a.m. GMT on August 5, 2025, at Hill Dickinson LLP in London. The meeting will seek shareholder approval for the directors to allot ordinary shares without pre-emption rights, which is necessary for the conversion of the investment agreement and the retail offer. Further details regarding the meeting will soon be available on the company’s website.
About Helium One Global
Helium One Global is recognized as a leading helium explorer in Tanzania, holding a significant interest in the Galactica-Pegasus helium development project in Colorado, USA. The company is strategically positioned to address the global helium supply shortage through its diversified project portfolio across two continents. The Southern Rukwa Project is currently advancing into the appraisal and development stage following successful exploration activities in the region. The company also maintains a 50% interest in the Galactica-Pegasus project, which is progressing towards commercial production. Helium One is listed on the AIM market of the London Stock Exchange under the ticker HE1 and on the OTCQB in the US as HLOGF.
