The Market Herald - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Blue Star Helium (BNL) is set to raise $2.3 million through a share placement at one cent per share
  • Due to strong demand from sophisticated and professional investors, the placement will be completed in two tranches
  • The first will be completed on June 23 and the second is subject to shareholder approval at next month’s annual general meeting
  • Funds from the raise will mainly be used for a drilling program targeting helium in Las Animas County, Colorado
  • Company shares have dropped 16.7 per cent and are trading for one cent each

Blue Star Helium (BNL) is set to raise $2,302,620.88 million through a share placement to sophisticated and professional investors.

The share placement will be issued at one cent each and, due to the high demand, the placement will be completed in two tranches.

The first tranche will raise $980,620.88 by issuing 98,062,088 shares at one cent each. This tranche will be completed on or around June 23.

The second tranche will raise $1,322,000 from the issue of 132.2 million shares at one cent each. However, shareholders will need to approve this tranche, which is expected at the annual general meeting to be held next month.

“I would like to thank existing shareholders for their continued support and warmly welcome new shareholders to the register,” Managing Director Joanne Kendrick said.

Funds raised from the placement will go towards Blue Star’s drilling program and be used for general working capital.

“The company is now in a very strong position to pursue its 2020 plans including advancing its portfolio of prospects and leads and a high impact drilling program targeting its prospective helium resources in Las Animas County, Colorado,” Joanne added.

Blue Star is focused on helium prospects across Utah, Arizona, Colorado and New Mexico where helium has previously produced high concentrations of between two and 10 per cent of the raw gas streams.

Company shares have dropped 16.7 per cent and are trading for one cent each at 11:22 am AEST.

BNL by the numbers
More From The Market Herald

Microcap Byron Energy clocks 2Kbbl/d from Gulf of Mexico offshore platform

Byron Energy's (BYE) share price has seen decent gains on Tuesday with news production from Gulf…

Strike Energy mints WA gas sale agreements with South32, AGL

Strike Energy (ASX:STX) will become a domestic WA gas supplier to South32 and AGL via new…

Elixir Energy reports progress in Daydream-2 well drilling at Grandis gas project, QLD

Elixir Energy (ASX:EXR) has released an update on the progress of drilling at the Daydream-2 appraisal…
Strike Energy (ASX:STX) - Chair, John Poyton [left] and CEO, Stuart Nicholls [right]

Strike Energy receives primary environmental approval for South Erregulla

Strike Energy's (ASX:STX) South Erregulla gas field phase one 40 TJ/d development has received its primary…