In a monumental financial development, Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) announces receiving staunch commitments, raising a sweeping A$7 million via an institutional placement of 333,333,334 new ordinary shares. This significant placement, priced at A$0.021 per share, witnessed robust support from both existing stakeholders and fresh domestic and international institutional investors.

Investment & Expansion Plan

The funds amassed from this placement set the stage for Blue Star to expedite helium exploration and developmental undertakings at its globally-acclaimed Las Animas County territory in Colorado. The strategic allocation of these funds encompasses:

• Operations related to the Voyager helium production facility, inclusive of production wells and the gathering mechanism.
• Developmental study endeavors at Galactica and Pegasus projects.
• Forging ahead with the exploration portfolio.
• Catering to general operational capital.

Leadership Perspective

Trent Spry, the stalwart Managing Director and CEO of Blue Star, expressed his gratitude, stating, “The unwavering support from our longstanding shareholders has been heartening. We’re equally thrilled to usher in new stakeholders. With this momentum, we anticipate a vibrant quarter culminating in the inaugural helium production at Voyager.”

Placement Insights

This institutional placement, priced at A$0.021 for each new share, is positioned at a 22.2% markdown from the closing price of Blue Star on 10th October 2023 (A$0.027 per share) and a 21.7% reduction from the 10-day VWAP leading up to that date. Set to be executed in a singular tranche, this placement ensures the new shares are on par with the existing shares in every aspect. The settlement of this deal is anticipated for 20th October 2023, with the quotation of the fresh shares slated for 23rd October 2023.

Collaborators on the Deal

The financial orchestrations of this placement were skillfully managed by Canaccord Genuity (Australia) Limited, acting as the Sole Lead Manager and Book Runner. Hannam & Partners channeled their expertise as the UK Placing Agent.

In Conclusion

Blue Star Helium Limited’s latest institutional placement paints a promising picture for helium development in Colorado. With amplified financial firepower, the company seems poised for a journey marked by exploration, development, and commendable growth.

  Blue Star Helium, Colorado, helium, Las Animas County, Trent Spry, USA