Helium One Boosts Portfolio with 50% Stake in Blue Star Helium Project in Colorado

Helium One Global (AIM: HE1), Tanzania's leading helium explorer, has announced a strategic move to acquire a 50% legal and beneficial interest in the Galactica-Pegasus project, owned Blue Star Helium (ASX: BNL), located in Colorado, USA. This conditional binding heads of agreement also includes a similar interest in the associated leases covering 246 km² (61,000 gross acres) of land within the proven helium fairway in Las Animas County, southern Colorado.

This acquisition strengthens Helium One's portfolio, expanding its presence into a region known for its significant helium reserves. It involves the Company entering into an Agreement to acquire a 50% interest in Blue Star's Galactica Project, along with a similar stake in leases covering 246 km² (61,000 acres) within the proven helium fairway of Las Animas County, Colorado. The region's confirmed discovery wells have produced helium flows up to 6% (averaging 3%) as free gas, with close proximity to existing infrastructure. Blue Star's State-16 development well, drilled in June 2024, flowed 1.9% helium at 285 Mcfd, along with 70% CO2. The Company's internal estimates project a gross resource of 675 million cubic feet, assuming a P50 helium concentration of 3%.

The Company has secured gross proceeds of £6.43 million (approximately US$8.2 million) through a direct subscription utilizing a cash box structure. This financing was accomplished by issuing 590,000,000 new ordinary shares at a price of 1.09 pence per share. The capital raised is earmarked specifically to fund the Company's upcoming acquisition, enhancing its ability to execute strategic growth initiatives. This successful capital raise underscores investor confidence in the Company's direction and its potential for further expansion.

Helium One has conditionally acquired a 50% interest in Blue Star's Galactica-Pegasus project. Development plans include drilling 15 wells and commissioning necessary helium and CO2 processing facilities, with an initial six-well program set for Q4 2024 and production expected in H1 2025. This acquisition aligns with Helium One's strategy to build a diversified helium portfolio.

Helium One remains focused on its Tanzania projects, with an Extended Well Test (EWT) currently underway at Itumbula West-1. The company has released a separate update on the EWT's progress. Additionally, Helium One has successfully raised £6.43 million (approximately US$8.2 million) through a direct subscription with Cynosure Capital PTY Ltd, with Marex Financial serving as the placing agent.

Lorna Blaisse, CEO, expressed enthusiasm about the partnership with Blue Star, highlighting it as a strategic move to expand Helium One's global presence in the helium sector. While maintaining a primary focus on their Tanzanian projects, this partnership offers an opportunity to generate near-term cash flow that could support the advancement of their Tanzanian asset. With this development, Helium One now has two potential revenue-generating projects in its portfolio. Blaisse emphasized the value of leveraging insights from this collaboration to enhance their progress towards producing assets.