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Blue Star Helium raises $6 million to fund multi-well drilling and secures additional Colorado acreage

The funds will be used for a multi-well drilling program along with further material lease acquisitions across Las Animas in Colorado.

Blue Star Helium Ltd - Blue Star Helium raises $6 million and secures additional 6,720 gross acres across its portfolio
The company’s total lease position is now 182,000 gross (127,000 net) acres

Blue Star Helium Ltd (ASX:BNL) has received firm commitments to raise up to A$6 million to fund a multi-well drilling program, further material lease acquisitions and provide working capital.

The placement, which is to sophisticated and professional investors through the issue of up to 171,428,572 fully paid shares at 3.5 cents per share, has been strongly supported.

Managing director Joanne Kendrick said: “We are very pleased by the level of support we have received from investors.

“We have an incredibly busy schedule and this placement ensures we are funded to focus on delivering strategic leasing acquisitions and our maiden drilling campaign.”

Leasing strategy extended

The company has also acquired an additional 6,720 gross (6,720 net) acres across its portfolio bringing its total land position in Las Animas, Colorado, to 182,000 gross (127,000 net) acres.

The additional acreage was secured by new leases won at the November Colorado State land auction.

Kendrick, said: “I’m pleased with the progress in our ongoing leasing strategy.

“These additional leases further advance our overall portfolio of prospects and leads in the Lyons Formation helium play, which has been proven in the area by the historical Model Dome field.”

Blue Star Helium lease position.

Placement details

A total of 65,340,138 fully paid shares will be issued under ASX listing rule 7.1 and 106,088,434 under listing rule 7.1A.

The placement is scheduled to settle on November 26, 2020, with the new shares expected to commence trading on a normal settlement basis from November 27, 2020.

Lead manager for the placement was Pamplona Capital Pty Ltd and co-manager was Foster Stockbroking.

Quick facts: Blue Star Helium Ltd

Price: 0.036 AUD

ASX:BNL
Market: ASX
Market Cap: $38.22 m
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