Example of a helium mining operation near Chambers, Arizona. Source: USA TODAY Network via Reuters.
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  • Blue Star Helium (BNL) receives firm commitments to raise $15 million in gross proceeds via an institutional placement
  • The placement will see more than 267 million ordinary shares issued to institutional and sophisticated investors at 5 cents each
  • The funds raised will go towards accelerating Blue Star’s helium exploration and development activities across its Las Animas County acreage in Colorado
  • Settlement of the shares is expected to occur on November 4, with quotation of the new shares on the ASX expected the following day
  • Blue Star Helium has dropped 4.55 per cent, trading at 6.3 cents per share at 2:20 pm AEDT

Blue Star Helium (BNL) has received firm commitments to raise $15 million in gross proceeds via an institutional placement.

The placement will see more than 267 million ordinary shares issued to institutional and sophisticated investors at 5 cents each. The price represents a 15.2 per cent discount to Blue Star’s last closing price on 27 October, and an 11.7 per cent discount to its 10-day VWAP.

The funds raised from the placement will go towards accelerating Blue Star’s helium exploration and development activities across its Las Animas County acreage in Colorado.

This includes expanding its helium exploration well, along with water well drilling and production development studies, both at and below surface.

Settlement of the shares is expected to occur on November 4, with quotation of the new shares on the ASX expected the following day.

Blue Star’s Managing Director and CEO Trent Spry said the strong support for the financing highlights both the extent and the expected high-grade helium content of its Las Animas landholding in Colorado.

“We believe that this shows a growing market recognition of the tightening fundamentals within the global helium market, and most particularly within the world’s largest helium market, the United States,” he said.

Meanwhile, the company expects to commence drilling its maiden helium exploration well soon, pending grant approval.

Blue Star Helium has dropped 4.55 per cent, trading at 6.3 cents per share at 2:20 pm AEDT.

BNL by the numbers
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