Blue Star Helium has successfully raised just over $2.3m via a share placement which will be used for the company’s drilling programme and general working capital purposes.
Due to the strength of the demand, the Australian exploration company will complete the placement in two tranches:
- The first trance of $980,620.88 from the issue of 98,062,088 shares at $0.01 per share, to be completed on or around 23rd June
- The second trance of just over $1.3m from the issue of 132,200,000 shares at $0.01 per share, to be completed following shareholder approval at the company’s 2020 AGM.
“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,” said Blue Star Managing Director Joanne Kendrick.
Headquartered in Australia, Blue Star Helium has an ongoing helium prospect generation programme focusing on Utah, Colorado, Arizona and New Mexico where helium has previously produced to surface in high concentrations of between 2% and 10% of the raw gas stream.
The programme has identified 30 prospects and leads in Blue Star Helium’s initial focus area from analysis of existing gravity and aero-magnetic data combined with surface mapping utilising historical geological maps and well data.
The initial focus area is in an area with historic nearby helium production and well tests confirming helium in multiple stacked reservoirs.
A significant leasing programme is underway over high-graded prospects.