• Blue Star to raise $7m via placement, with the potential for a further $2m via share purchase plan
  • Funds raised will enable Blue Star to advance helium development and exploration evaluation activities


Blue Star Helium has received firm commitments to raise $7m via a strongly supported institutional placement, which will advance helium development and exploration activities across its Las Animas County acreage in Colorado.

Blue Star Helium (ASX:BNL) could also top that up with a further $2m via a share purchase plan if it receives the necessary approval from the ASX.

The company has been putting all the pieces together needed to bring Voyager – its maiden development project, just 6 miles from the historical Model Dome field – into production during Q4, 2023. The Model Dome area hosts amongst the top three highest helium concentrations in the world.

Achieving this goal will make Blue Star Helium one of the first ASX-listed primary helium plays to enter production, allowing it to tap into helium prices that have been floating towards the stratosphere due to a critical lack of supply.

The rare gas, used in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines and more, currently sees US short-term contract and spot pricing of between US$450 and US$3,000 per thousand cubic feet (Mcf) depending on its purity (98% to 99.999%).

This underscores just how valuable the 2C (best estimate) contingent resource of 643 million cubic feet (MMcf) of helium at Voyager is for the company, especially when total field and plant operating costs are estimated at between US$100 and US$120 per Mcf with the plant potential to deliver 38 MMcf (38,000 Mcf) in the first full capacity year.


Production on the horizon

Production is well and truly on the horizon with over $7m in the bank following a strongly supported placement to existing shareholders and new domestic and international investors.

The placement price of $0.021 per new share represents a 22.2% discount to Blue Star’s last closing price on 10 October of $0.027 and is a 21.7% discount to the 10-day volume weighted average price of Blue Star shares up to close also on 10 October.

Settlement is expected to occur on Friday 20 October 2023, with quotation of the new shares expected on Monday 23 October 2023.

There’s also the opportunity for existing eligible shareholders to participate via a Share Purchase Plan (SPP) targeting a further A$2 million at an offer price of $0.021 subject to necessary approval from the ASX.

Eligible shareholders can apply for up to A$30,000 of additional Blue Star shares at an offer price of $0.021.

Shares issued under the SPP (which is not underwritten) will rank equally with existing fully paid ordinary Blue Star shares.


Exploration and development work

Funds raised will be directed towards activities relating to the Voyager helium production facility and associated works including production wells and the gathering system, as well as production development studies at Galactica and Pegasus projects.

They will also be used to advance BNL’s wider prospect portfolio, comprising 300,000 acres of shallow resources associated with the Lyons play, and deeper plays considered to potentially contain significant resources.




This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.