Noble Helium (ASX:NHE) raises $12m for second North Rukwa well

• Noble Helium (NHE) secures significant interest from shareholders to raise $12 million through the issuance of 60 million shares at 20 cents each
• The issuance price constitutes a 21.6 per cent markdown from the most recent trading price of $2.55 on August 16
• The will use the funds for drilling its second exploration and appraisal well at its North Rukwa helium project in Tanzania, scheduled for Q3
• Wilsons Corporate Finance and MST Financial Services act as Joint Lead Managers of the placement will receive six per cent of the gross proceeds raised
• NHE shares closed down 15.7 per cent, trading at 21.5 cents at market close

Noble Helium (NHE) has garnered significant interest from shareholders to raise $12 million through the issuance of 60 million shares at 20 cents each.

The company intends to employ the funds for drilling its second exploration and appraisal well at its North Rukwa helium project in Tanzania, scheduled for the third quarter of 2023.

“With Marriott Rig #16 now in transit to Tanzania, well site preparations underway, and detailed well design completed, we are very close to a potentially transformational moment for Noble Helium, with the drilling of our first two wells,” NHE CEO and Co-Founder Justyn Wood said.

“The ability to design Mbelele-2 to appraise Mbelele-1 as well as test deeper targets will be pivotal in capturing the fast-track commercialisation opportunities we have identified.”

The issuance price of 20 cents constitutes a 21.6 per cent markdown from the most recent trading price of $2.55 on August 16, and a reduction of 16.8 per cent from the five-day volume-weighted average price (VWAP) of shares traded on the ASX.

Wilsons Corporate Finance and MST Financial Services have functioned as Joint Lead Managers of the placement (JLMs) and, consequently, will receive six per cent of the total proceeds raised through the placement.

NHE shares closed down 15.7 per cent, trading at 21.5 cents at market close.