First Helium announced the closing of an oversubscribed non-brokered private placement, raising approximately $2.58 million in gross proceeds. The financing is expected to support continued development of the company’s Worsley project in Northern Alberta, along with operating expenses and general working capital needs.
The company issued 51.59 million units at a price of C$0.05 per unit. Each unit consists of one common share and one transferable warrant. The warrants are exercisable at prices ranging from C$0.10 to C$0.15 per share, depending on the timing of exercise, and remain valid for 36 months, expiring on May 27, 2029, subject to an acceleration provision.
First Helium stated that the proceeds will be used to advance asset development activities at its Worsley helium project while also providing additional financial flexibility for ongoing operations.
No finders’ fees were paid in connection with the financing.
The warrants include an acceleration feature that allows the company to shorten the exercise period if the shares achieve certain trading-price thresholds based on the 10-day volume-weighted average trading price on the TSX Venture Exchange. Any unexercised warrants would expire following the accelerated deadline.
Company insiders participated in the financing, acquiring a total of 16.15 million units. First Helium noted that the insider participation qualifies as a related-party transaction under Canadian securities regulations but is expected to be exempt from formal valuation and minority shareholder approval requirements because the transaction size falls below prescribed thresholds.
The offering remains subject to customary regulatory approvals, including acceptance by the TSX Venture Exchange. Securities issued under the financing are subject to a four-month statutory hold period under applicable Canadian securities laws.
First Helium is focused on helium exploration and development in North America. The company controls more than 53,000 acres along the Worsley Trend in Northern Alberta and has continued to expand exploration efforts following its successful 15-25 helium discovery well. In addition to helium production opportunities, the company also generates cash flow from oil assets located on its Worsley land base.
KEY QUOTE:
“The Company intends to use the net proceeds from the Private Placement Offering to fund additional asset development and operating expenses on its Worsley project, as well as for general working capital.”
Edward J. Bereznicki, President, CEO and Director, First Helium
