Mendell Helium (LSE:MDH) will use the £5m placing and subscription at an issue price of 4p per new ordinary share to accelerate Fort Dodge development plans, fund completions and recompletions and advance its proposed acquisition of M3 Helium.
The company sets out use of proceeds in priority order as estimated costs per item: production wells at £694,074 each, disposal wells at £315,555 each and helium purification plants at £1.1m each, noting each disposal well and purification plant is sized to service up to four production wells.
The fundraising is being done in two tranches, with First Tranche admission expected on or around 8 May and the Second Tranche conditional on shareholder approval at a General Meeting expected in May 2026, the company will issue 57.61m new shares to M3 Helium shareholders on completion of the acquisition, OAK Securities has been appointed joint broker and agreed to accept 1.5m fee shares at the issue price for its first-year fees, and Mendell says it has obtained advance HMRC assurance that the new shares will be EIS and VCT eligible.
Operationally, completion operations on Rost 2-26 are under way this week, recompletion of Schneweis Ventures 13 is due to commence in May 2026, the group plans to drill four further new wells and construct a second helium purification plant in 2026, Rixford Resources has committed US$372,000 for a 35% working interest in Rost Twin (subject to a 20% processing fee on its share), Mendell’s outstanding loans to M3 Helium total approximately US$2.35m and a CPR published 30 April estimates Fort Dodge prospective helium resources at P90 2.12 Bcf, P50 5.34 Bcf and P10 9.78 Bcf (the company supplies illustrative in‑ground values at $300/Mcf).
