Investor backs Gold Hydrogen with funding
Key points
- Canadian billionaire Eric Sprott invested $4 million as part of a $7.9 million institutional placement.
- Shares for the capital raising were priced at $0.44 each with attached options.
- Funds will advance a modular helium plant on South Australia's Yorke Peninsula.
Gold Hydrogen (ASX:GHY) secured a $4 million investment from billionaire Eric Sprott as part of a $7.9 million institutional capital raising.
The placement was handled at a price of $0.44 per share, matching the company's strategy to expand local operations.
"Dozens of companies worldwide are hunting for natural hydrogen, and while some have found hydrogen underground, other than Mali, none have been able to capture and use this notoriously hard-to-trap gas," said Gold Hydrogen Chairman Alexander Downer regarding recent well testing results.
The placement includes options exercisable at $0.66 within 24 months, which the company stated could yield an additional $6 million if fully exercised.
Following the announcement, the Gold Hydrogen share price was up at $0.49.
The enterprise focuses on natural hydrogen and helium exploration across its project areas in South Australia.
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