Helium One Global Limited (AIM: HE1) saw its shares surge by 20% to close at GBX 0.45 on the London Stock Exchange’s AIM board on Monday, following the announcement of a major strategic shift in its financing structure and further operational progress at its Galactica-Pegasus helium project in Colorado. The Tanzanian-headquartered helium exploration company confirmed the final equity conversion under its July 2025 investment agreement and revealed it will terminate the funding arrangement earlier than expected.
The move comes as Helium One restructures its capital strategy around leasing-based infrastructure deployment at Galactica, significantly reducing its upfront equipment costs. A key element of this shift is a newly signed lease agreement with North American energy infrastructure major Kinder Morgan for CO₂ processing equipment, which will be used as part of the initial production pathway before helium extraction.
This change has allowed the company to repay the unconverted loan balance rather than issue more shares, thereby easing dilution pressures and boosting investor sentiment. Institutional flows remain cautious, but retail momentum has returned in force, evidenced by the intraday price spike and uptick in forum activity around the HE1 ticker.
Why did Helium One Global decide to close its investment agreement ahead of schedule?
Helium One Global originally announced the £10 million convertible funding facility in July 2025 to support parallel helium developments in Tanzania and the United States. After securing shareholder approval in August, the firm began drawing down tranches of the agreement. As of this week, £7.875 million of the facility has been converted into equity. The final conversion tranche amounted to £3.5 million, executed at a conversion price of 0.218 pence per share, resulting in the issue of roughly 1.61 billion new ordinary shares.
Instead of converting the remaining £2.125 million balance, Helium One chose to repay this portion in cash. The repayment, which includes a 12% early termination fee as stipulated in the Deed of Termination, totals approximately £2.38 million and is due on or before 14 October 2025. The decision to repay rather than convert reflects the company’s revised capital requirements, made possible by switching some upfront equipment purchases to leasing arrangements.
James Smith, Non-Executive Chairman of Helium One Global, explained that working alongside its partner Blue Star Helium, the company has significantly reduced its immediate production equipment capital needs. By opting for leasing instead of direct purchases, the company maintained flexibility while preserving its cash position. Smith emphasized that the revised development strategy will not impact the timing of either the Tanzanian ESP programme or the first gas milestone in the United States.
How will Helium One Global’s final £3.5M share conversion and debt repayment reshape its shareholder base and AIM voting rights structure in 2025?
Following the final conversion, Helium One has applied for admission of the newly issued shares to trading on AIM. Upon admission, the total number of ordinary shares in issue will rise to approximately 9.32 billion, each carrying one voting right. There are no treasury shares currently held. This new total will now serve as the denominator for shareholders determining notifiable interests in accordance with FCA Disclosure Guidance and Transparency Rules.
The substantial increase in shares on issue marks a dilution event, but market reaction suggests investors are taking a favourable view of the company’s decision to cap further dilution by repaying the final tranche. The share price increase of 20% on Monday reflects renewed optimism in the company’s strategic clarity.
How is the Galactica-Pegasus project progressing after the Kinder Morgan leasing agreement?
Helium One holds a 50% working interest in the Galactica-Pegasus helium project, located in Las Animas County, Colorado, with operations led by Australian partner Blue Star Helium Limited (ASX: BNL). On 13 October 2025, Blue Star announced the signing of a lease agreement with Kinder Morgan Treating LP for an amine processing plant. The leased plant will process up to 4.2 million cubic feet per day of raw gas, enabling the production of up to 37,000 tonnes of high-purity carbon dioxide annually.
The Kinder Morgan unit includes a 300 gallons-per-minute amine plant with a flash tank, amine contactor, inlet gas filter separator, and outlet gas scrubber. Initial production will focus on CO₂ separation, with helium recovery following via a helium-enriched stream through a dedicated helium recovery unit (HRU).
The agreement with Kinder Morgan is structured as a two-year lease, with automatic annual renewals unless cancelled by either party. Kinder Morgan Inc. (NYSE: KMI) is one of North America’s largest CO₂ transportation and processing infrastructure providers, and its involvement lends credibility to Galactica’s early commercialisation phase. Blue Star’s leasing strategy is seen as a capital-light approach that supports faster commissioning without locking up working capital in infrastructure.
What is the project timeline for first helium and CO₂ production from Galactica?
Construction mobilisation is scheduled to begin in October 2025, with site preparation and gas gathering systems now in final design. Helium One reaffirmed that it remains on track to deliver first helium in December 2025, with CO₂ to follow in early 2026.
Initially, the amine plant will strip out CO₂ from the gas stream before feeding the purified stream into the HRU. Liquefaction and tie-in of equipment to convert the separated CO₂ into saleable grade is expected in H1 2026. As additional wells are connected throughout the first half of 2026, the plant will gradually scale to full processing capacity. This phased ramp-up reduces operational risk while preserving optionality for downstream sales.
The systematic drilling of six wells across the Lyons Formation earlier this year yielded consistent helium concentrations up to 3.3% and promising flow rates, according to Blue Star’s operational updates. The asset has already demonstrated commercial potential and is poised to enter the production phase before year-end.
How are Tanzanian operations progressing following the Itumbula West-1 discovery?
In parallel to its U.S. activities, Helium One is moving forward at its flagship Rukwa Project in Tanzania. The project, located in the southern Rukwa Rift Basin, transitioned into the development stage following the successful helium discovery at Itumbula West-1 during the 2023–2024 exploration campaign. Extended well testing demonstrated stable helium flow at 5.5%, one of the highest naturally occurring concentrations reported in East Africa.
After the EWT success, Helium One filed for a mining licence with the Tanzania Mining Commission in September 2024 and secured a formal award for the 480 km² licence area in July 2025. The company is currently preparing for the deployment of an Electronic Submersible Pump (ESP) for downhole testing, scheduled to commence later this quarter.
The Tanzanian asset remains 100% owned by Helium One and is viewed as a strategic helium reserve for long-term development. The company has stated that its funding decisions, including the termination of the investment agreement, will not affect the Tanzanian work programme’s progress or timelines.
How are investors interpreting Helium One Global’s 20% stock rally and what does current market sentiment suggest for the near-term outlook of HE1 shares on AIM?
The 20% rise in Helium One’s share price to GBX 0.45 on 14 October 2025 suggests that retail investors are encouraged by the company’s proactive capital restructuring. The avoidance of further dilution, coupled with tangible progress on infrastructure leasing and commissioning, is seen as a positive signal heading into a pivotal Q4 period.
Institutional activity remains muted, with broader caution lingering in the junior resource sector. However, analysts observing AIM-listed exploration companies have noted that Helium One’s recent moves indicate a maturing financial strategy. The partnership with a credible infrastructure provider like Kinder Morgan and the successful drilling outcomes at Galactica are enhancing confidence in execution capability.
Forum chatter and Bing keyword searches such as “HE1 Galactica CO2 lease,” “HE1 first gas December 2025,” and “Helium One stock forecast” have all seen an uptick since the announcement, suggesting renewed interest from speculative and early-stage investors.
What catalysts are expected for Helium One Global in the remainder of 2025?
Two key developments are expected to shape Helium One’s outlook over the next 90 days. First, the Tanzanian ESP test will offer clarity on the commercial potential of the Itumbula West-1 discovery. Second, the Galactica-Pegasus project is targeting helium production in December, with CO₂ monetisation to follow in early 2026.
Investors are also watching closely for offtake agreements, strategic partnerships, or broader market moves by the company to monetise its helium reserves, particularly in a tightening global supply environment. The convergence of demand from semiconductor, medical, and aerospace sectors continues to make helium one of the most strategically valuable niche gases globally.
With its dual-geography portfolio and reduced capital intensity, Helium One may be better positioned than many of its AIM-listed peers to take advantage of macroeconomic tailwinds and project-level de-risking milestones.
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