Blue Star Helium Ltd. has raised AU$10 million to advance its Galactica and Pegasus projects in Colorado, USA.
The company will issue 1.7 billion new shares to investors at 0.6 cents per share. The share placement will be completed in two tranches with the first trance consisting of 997,674,493 new shares and the second of 668,992,174 shares.
Settlement of the first tranche is expected on April 7, while the second tranche is expected to be held in mid-May.
Blue Star CEO Trent Spry said: “This funding confirms the market’s support for our immediate roadmap.
“It allows us to focus on two key priorities: increasing our Galactica output to meet current demand; and moving forward with the scheduled commencement of Pegasus.”
Blue Star’s Galactica/Pegasus is a large-scale, multi-product development. A range of development pathways are under consideration, including an initial leased and third party operated plant option similar to that deployed at Voyager.
Future expansion is expected to include a carbon dioxide by-product stream and potentially 99.999 per cent gaseous helium production in field.