Quantum Helium (AIM:QHE) has raised £5m through a conditional institutional placing of 16.6bn new shares at 0.03p a share. The new stock represents roughly one-third of the enlarged share capital (c.33.3%).
Proceeds will be used, in the company’s stated priority order, to advance development planning and engineering at the Sagebrush Project; progress permitting and drill-ready targets at Coyote Wash (100% owned); fund well planning, long‑lead items and infrastructure design for both projects; support seismic interpretation and subsurface modelling; and provide additional working capital and flexibility. Quantum says the ongoing extended production test at Sagebrush‑1 is being funded from existing cash.
The placing was arranged by OAK Securities and was cornerstoned by institutional investors. OAK will receive a 6% cash commission on gross proceeds, a one‑off advisory fee of £15,000, an annual retainer of £50,000 and broker warrants to subscribe for 6% of the placing shares at the placing price for three years.
"The placing reflects increasing awareness of the strategic importance of helium...this funding places the Company in the strongest financial position it has ever been in," Carl Dumbrell, chairman, said.
Perforation of the Lower Leadville is scheduled this coming week and the company expects further operational updates in the coming weeks.
