First Helium Secures $3.64 Million Financing for Growth
CALGARY, Alberta — First Helium Inc. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) is thrilled to announce the successful closing of an upsized non-brokered private placement financing. This strategic move is set to bolster the Company’s plans for its Worsley project.
The Financing Breakdown
In this round, First Helium issued a total of 60,666,671 units at a competitive price of $0.06 per unit. This accomplishment translates into gross proceeds of approximately $3.64 million. Each unit consists of one common share and a warrant, allowing the holder to purchase an additional share at a price of $0.09 for a duration of 36 months, expiring in late 2027. The issuance of warrants comes with an acceleration clause, providing potential for early exercise based on trading volume conditions.
Intended Use of Proceeds
Proceeding from this placement will be instrumental in funding additional asset development and operational expenses associated with the Worsley project. The Company is committed to driving growth and enhancing its working capital through strategic exploration initiatives.
Exciting Prospects at Worsley
President & CEO Ed Bereznicki expressed optimism about the untapped potential within the Worsley Property, which spans over 53,000 acres in a historically productive area. The site is not only home to First Helium's helium discovery well but also boasts a significant resource of approximately 323 million cubic feet of helium. This potential is underpinned by unsuccessful attempts for oil and helium-enriched natural gas, evidenced by their recent exploration successes.
Future Exploration
One of the key plans includes testing the large Leduc anomaly, which holds promise for light oil, alongside the horizontal helium target. This could pave the way for a substantial helium play and establish a repeatable production strategy in the region. The financing enhancement is expected to propel these projects forward despite the challenging conditions currently faced by resource sectors.
Regulatory Considerations and Transaction Details
As with any financing activity, this offering is subject to necessary regulatory approvals. All securities issued are accompanied by a statutory hold period of four months per Canadian securities regulations.
Moreover, the Company has engaged in related-party transactions, with certain directors purchasing a total of 25,875,333 units during the offering. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements, highlighting its commitment to transparency and compliance.
Additional Financials
Raymond James Ltd. was a key player in facilitating this offering, receiving finders’ fees of $11,760 along with 196,000 warrants under the same terms as those issued to subscribers. First Helium is poised to utilize the proceeds for significant growth opportunities ahead.
About First Helium
First Helium aims to establish itself as a leading independent provider of helium in North America. With management boasting vast expertise across oil and gas exploration, finance, and capital markets, they are strategically positioned to exploit the growing demand for helium.
Currently, First Helium's operations revolve around the Worsley Project, where extensive drilling activities have led to multiple discoveries. The success and cash flow from oil contributions have been vital for sustaining ongoing exploration efforts, indicating a robust future.
For further details about First Helium, feel free to reach out to their investor relations at the contact details provided below.
Contact Information
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Frequently Asked Questions
What was the total amount raised in First Helium's recent financing?
First Helium raised approximately $3.64 million through the upsized non-brokered private placement financing.
What are the primary uses for the proceeds from the financing?
The proceeds will be utilized for asset development, operating expenses for the Worsley project, and general working capital needs.
What is the key feature of the issuance in this round?
Each unit consists of one common share and one warrant that allows the purchase of an additional share at a favorable price of $0.09, expiring in October 2027.
Where is the Worsley project located?
The Worsley project is located in Northern Alberta, covering more than 53,000 acres and is recognized for its helium production potential.
What does First Helium plan to explore further?
The Company is eager to explore the large Leduc anomaly and horizontal helium targets to potentially unlock extensive helium and oil production.
