First Helium Inc. (“First Helium” or the “Company”) (TSXV:
HELI) (OTCQX: FHELF) (FRA: 2MC), today announced the
closing of its non-brokered private placement financing which
was previously announced in the Company’s press release dated
January 23, 2024. First Helium issued 66,173,000 units (“Units”) at
a price of $0.05 per Unit for gross proceeds of $3,308,650 (the
“Offering”)
. All monetary figures in Canadian
Dollars.
Each Unit consists of one common share (a
“Share”) in the capital of First Helium and one
common share purchase warrant (each whole common share purchase
warrant being a “Warrant”). Each Warrant is
exercisable to acquire one Share at a price of $0.075 per Share for
a period of 36 months, expiring April 4, 2027. The Warrants will
not be subject to acceleration. The Company intends to use the net
proceeds from the Offering to fund additional asset development and
operating expenses on its Worsley project, as well as for general
working capital.
“We remain extremely excited with our Worsley
Property which encompasses more than 60,000 acres of wholly-owned
land on the historically productive Peace River Arch. This includes
our helium discovery well, with an independently evaluated resource
of 323 million cubic feet of helium1,2, along with numerous
multi-zone targets for helium, oil, and natural gas, substantiated
by our two successful oil wells and our cased horizontal well,”
said Ed Bereznicki, President & Chief Executive Officer of
First Helium. “We look forward to testing our horizontal helium
target this summer to confirm our expectations and set the stage
for a potential large scale regional, repeatable play for helium
and natural gas,” added Mr. Bereznicki. “Closing this financing,
which was completed during some challenging times for the resource
sector, and for helium explorers in particular, will now allow us
to continue to advance our asset base for the benefit of
shareholders through Company and potentially partner-funded
exploration and development programs,” concluded Mr.
Bereznicki.
The Offering is subject to receipt of all
necessary regulatory approvals and acceptance of the TSX Venture
Exchange. All securities issued under the Offering will be subject
to a statutory hold period of four months, in accordance with
applicable Canadian securities laws. There are no material facts or
material changes regarding the Company that have not been generally
disclosed.
Finders’ fees of $25,249 and 504,980 Warrants
were issued to various finders under the Offering. The finders’
warrants have the same terms and conditions as the Warrants issued
to the subscribers under the Offering.
Certain directors and officers of the
Company participated in the Offering and purchased a total of
26,288,000 Units. As such directors and officers are related
parties within the meaning of Multilateral Instrument 61-101
(Protection of Minority Security Holders in Special Transactions)
of the Canadian Securities Administrators, the Offering to those
persons constituted related-party transactions under MI 61-101. The
Company is relying on exemptions from the formal valuation and
minority shareholder approval requirements in sections 5.5(b) and
5.7(1)(b) of MI 61-101 as the transaction is a distribution of
securities for cash consideration and neither the Company nor the
related parties have knowledge of any material information
concerning the Company or its securities that has generally not
been disclosed, the Company trades on the TSXV, the fair market
value of the securities to be distributed does not exceed
$2,500,000, the Company has one or more independent directors and
two thirds of those independent directors have approved the
transaction. A material change report will be filed fewer than 21
days prior to the closing of the Offering. The Company did not file
a material change report 21 days before closing of the Offering as
the details of the insider participation were not known at that
time.
Notes:
(1) Sproule
Associates Limited (“Sproule”) Contingent Resource Unrisked “Best
Estimate”.(2) "Contingent Resources" are not, and should not
be confused with, oil and gas, or helium reserves. Further
information regarding Contingent Resources can be found in First
Helium’s Final Prospectus, dated June 28, 2021, filed on First
Helium’s SEDAR+ profile at www.sedarplus.ca.
ABOUT FIRST HELIUM
Led by a core Senior Executive Team with diverse
and extensive backgrounds in Oil & Gas Exploration and
Operations, Mining, Finance, and Capital Markets, First Helium
seeks to be one of the leading independent providers of helium gas
in North America.
First Helium holds over 60,000 acres along the
highly prospective Worsley Trend in Northern Alberta which has been
the core of its exploration and development drilling activities to
date.
Building on its successful 15-25 helium
discovery well at the Worsley project, the Company has identified
numerous follow-up drill locations and acquired an expansive
infrastructure system to facilitate future exploration and
development of helium across its Worsley land base. Cash flow from
its successful oil wells at Worsley has helped support First
Helium's ongoing helium exploration and development growth
strategy. Further potential oil drilling locations have also been
identified on the Company's Worsley land base.
For more information about the Company, please
visit www.firsthelium.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Edward J. BereznickiPresident, CEO and Director
CONTACT INFORMATION
First Helium Inc.Investor RelationsEmail:
ir@firsthelium.comPhone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking
statements within the meaning of applicable securities laws. The
use of any of the words “anticipate”, “plan”, “continue”, “expect”,
“estimate”, “objective”, “may”, “will”, “project”, “should”,
“predict”, “potential” and similar expressions are intended to
identify forward looking statements. In particular, this press
release contains forward looking statements concerning the
completion of the Offering, the anticipated proceeds of the
Offering, and the use of proceeds of the Offering. Although the
Company believes that the expectations and assumptions on which the
forward looking statements are based are reasonable, undue reliance
should not be placed on the forward looking statements because the
Company cannot give any assurance that they will prove correct.
Since forward looking statements address future events and
conditions, they involve inherent assumptions, risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of assumptions, factors and
risks. These assumptions and risks include, but are not limited to,
assumptions and risks associated with the state of the equity
financing markets and regulatory approval.
Management has provided the above summary of
risks and assumptions related to forward looking statements in this
press release in order to provide readers with a more comprehensive
perspective on the Company’s future operations. The Company’s
actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive from them. These forward looking statements are
made as of the date of this press release, and, other than as
required by applicable securities laws, the Company disclaims any
intent or obligation to update publicly any forward looking
statements, whether as a result of new information, future events
or results or otherwise.
SOURCE: First Helium Inc.
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