Blue Star Helium (ASX:BNL) secured firm commitments for an institutional placement to raise $10 million in gross proceeds.
The placement, which was oversubscribed, involves the issuance of approximately 1.67 billion new ordinary shares at a price of $0.006 per share.
Support for the capital raise was broad-based, drawing interest from domestic and international institutional investors, high-net-worth individuals, and existing shareholders.
Managing Director and CEO Trent Spry noted that the funding is a pivotal milestone that allows the company to focus on two immediate operational priorities: scaling up output at the Galactica project to meet current demand and advancing the scheduled commencement of the Pegasus project.
The capital will also be directed toward general working capital requirements.
The placement is structured in two distinct tranches. Tranche 1 will issue approximately 997.7 million shares to raise $6 million under the company’s existing issuance capacity, with settlement expected by April 7.
Tranche 2 seeks to raise the remaining $4 million through the issuance of roughly 669 million shares, though this remains subject to shareholder approval at the annual general meeting scheduled for mid-May.
Financial coordination for the deal was led by Canaccord Genuity (Australia) as lead manager and Bookrunner, with Blackpeak Capital serving as Corporate Advisor.
At the time of reporting, Blue Star Helium's share price was $0.0090.