London-listed helium explorer Helium One has acquired a significant stake in two major US projects as it continues its quest to expand its global footprint.
The firm, which is the biggest helium explorer in Tanzania, has signed an agreement to acquire a 50 per cent stake in Blue Star Helium’s Galactica-Pegasus project in Colorado.
Helium One said the project contains confirmed discovery wells in the region flowing up to six per cent helium as free gas and are well positioned close to existing helium infrastructure.
This deal also includes a similar share in 61,000 acres of land in the “proven helium fairway” Las Animas County, in southern Colorado.
The company said the move would allow it to diversify its portfolio, both operationally and geographically, and followed an extensive review of several potential asset acquisition targets over the past 12 months.
It added that it would pay for the acquisition via £6.43m raised through a direct subscription by issuing 590 million new shares at 1.09 pence each. The deal is dependent on the new shares being admitted to trading on AIM.
Lorna Blaisse, chief executive, said: “We are very pleased to have entered into this partnership with Blue Star that allows us to build an expanding global footprint in the helium sector at such a pivotal time.
“Our projects in Tanzania remain our primary focus, but this development opportunity enables the Company to potentially secure near-term cash flow to aid with progressing our Tanzanian asset.
“We now have a portfolio of two potential near term revenue projects in our portfolio.
“We very much look forward to working with Blue Star in this new partnership and aim to draw on our learnings from another proven helium play in order to extend our knowledge to this new play as we advance towards producing assets.”