Noble Helium Limited (ASX:NHE) has announced it will raise $12.0 million to fund its North Rukwa exploration drilling program in Tanzania. Noble Helium is focused on addressing the growing global demand for helium through its projects located along Tanzania’s East African Rift System. The placement, priced at $0.029 per share, garnered strong support from both new and existing Australian and international institutional investors, professional investors and sophisticated investors.
The funds raised will primarily support the company’s upcoming drilling campaign, scheduled to begin in the second quarter of calendar year 2026. These funds will also support related technical and appraisal activities and preparation for early commercialisation. The placement consists of two tranches, with the first tranche of 137.9 million shares to be issued under the company’s placement capacity. The second tranche, comprising 275.9 million shares, is subject to shareholder approval at an Extraordinary General Meeting (EGM) expected to be held in May 2026.
According to Noble Helium, the strong demand reflects confidence in the company’s strategic direction, management and board. This confidence also acknowledges the increasing importance of discovering and commercialising new helium supplies amidst disruptions to the global helium export market. In addition, certain existing convertible note, secured loan and VAT loan holders will convert their loans into ordinary shares at the offer price, resulting in the issue of new shares to the value of up to approximately A$6.7 million, and approximately 68.4 million options, subject to shareholder approval at the EGM.
Executive Chairman Dennis Donald stated that the institutional placement provides certainty of funding in challenging market conditions. He also noted the widespread interest in the North Rukwa project from large energy and gas aggregation companies, and the company will continue to evaluate potential farm-outs and acquisitions. MST Financial Services Pty Limited acted as Sole Lead Manager to the Placement, and Peak Asset Management Pty Ltd acted as Co-Manager.
