Noble Helium (ASX:NHE) Reports Significant Progress in North Rukwa Project
Operational Highlights
Noble Helium (ASX:NHE) has made significant strides in its North Rukwa Project, which is poised to be the world’s third-largest helium reserve. The company selected the first three drill sites from ten identified shallow gas targets along the western margin. Drilling contractor BoreXpert is ready to mobilise to the site now that all necessary import clearances have been obtained.
At six locations across the Kinambo area, significantly elevated background helium concentrations were detected. This promising geological data provides confidence in the project’s potential to yield valuable helium resources.
Future Drilling Plans
Drill sites scouted by Noble Helium’s Chief Operating Officer, Dermot O’Keeffe, are primarily accessible, with two requiring minor track preparations. Each planned drilling hole is expected to take two to three days to complete using cost-effective and specialised equipment. Recently acquired exploration data has revealed additional shallow helium gas cap structures, boosting initial gas estimates.
While operations will be paused due to seasonal rains, the company is actively interpreting data from recent exploration and planning for future drilling activities once conditions improve.
Financial Developments
In a strategic move to secure funding, Noble Helium entered a convertible security and share placement agreement with Obsidian Global GP LLC, aiming to raise up to US$2.5 million. The first tranche will raise approximately A$1.36 million. An At-The-Market subscription agreement with Dolphin Corporate Investments provides an additional US$2 million of standby equity capital over two years, giving the company enhanced financial flexibility without significant dilution.
At quarter-end, Noble Helium reported a cash balance of A$1.6 million, primarily utilised for exploration and administrative expenditures during the quarter.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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