Business
Placing to raise £700,000 to fund production well
Mendell Helium plc has successfully raised £700,000 through a placing of 23,333,333 new ordinary shares at 3 pence per share, with the proceeds intended to fund the second Rost production well and support M3 Helium Corporation's expansion in Fort Dodge, Kansas. This fundraising complements a non-binding co-funding proposal from US investors for the second well, estimated to cost US$937,000, with the investor group funding 50% and contributing US$125,000 towards upgrades at the Brobee disposal well. Additionally, Mendell Helium is in contract negotiations to dewater and recomplete a disused well, presenting another potential revenue stream. The company has also received Enterprise Investment Scheme advance assurance from HMRC. Disclaimer*
About this update from Mendell Helium Plc
[{"type":"text","content":"\n\n\n \nMendell Helium plc\n \n(\"Mendell Helium\" or the \"Company\")\n \nPlacing to raise £700,000 to fund second Rost production well\n \nInstitutional support positions Mendell Helium for next stage of growth\n \nMendell Helium is pleased to announce that it has conditionally raised £700,000 (before expenses) by way of a placing with institutional and other investors (the \"Placing\") for a total of 23,333,333 new ordinary shares of 1 pence each in the Company (\"Ordinary Shares\") at a price of 3 pence per new Ordinary Share (the \"Issue Price\"). \n \nThe Placing marks an important milestone for Mendell Helium as, together with a non-binding co-funding proposal from US based investors described below, it provides the Company with the capital strength to support M3 Helium Corporation's (\"M3 Helium\") production strategy in Fort Dodge, Kansas through drilling a new well. With proven commercial production at M3 Helium's Rost 1-26 (\"Rost\") well, the Board considers that the opportunity to accelerate its development plan in Fort Dodge is compelling.\n \nHighlights\n \n· A total of 23,333,333 new Ordinary Shares have been issued through the Placing to raise approximately £700,000\n· The Placing complements a proposal from a group of US based investors to co-fund a second well on the Rost lease in Fort Dodge\n· The combination of the Placing and the proposed US based investor co-funding is expected to accelerate M3 Helium's operations in Fort Dodge and provide a further revenue stream\n· Discussions with a Kansas oil & gas company to dewater and recomplete a currently disused well have moved to the contract negotiation stage, providing another potential opportunity for M3 Helium to increase its revenue\n· Mendell Helium has received Enterprise Investment Scheme (EIS) advance assurance from HMRC\n \nAs announced on 27 June 2024, the Company has an option (the \"Option\") to acquire M3 Helium, a producer of helium which is based in Kansas and holds an interest in six producing wells. There is no certainty that the Company's option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete a re-admission. As announc...