Noble Helium Advances Tanzania Drilling Plans Amid Strong Helium Signals and New Funding

Exploration Progress in Tanzania

Noble Helium Limited has made notable strides in its flagship North Rukwa Project located in Tanzania’s Rukwa Basin, an area considered to hold the world’s third largest helium reserve potential after the US and Qatar. During the December 2024 quarter, the company selected three drill sites from a shortlist of ten promising shallow gas targets stretching along the western margin of North Rukwa.

The sites, chosen for their accessibility and geological promise, are positioned on trend with helium gas bubbles recently detected at surface, particularly in the southern Kinambo area. These locations benefit from 3D seismic data and shallow seismic surveys indicating potential stacked pay zones, multiple gas-bearing sand layers that could enhance resource volumes.

Helium Concentrations and Geophysical Surveys

Significantly above-background helium concentrations were measured across six surface locations in the Kinambo area by a team from the University of Dar es Salaam using portable mass spectrometry. These findings reinforce the prospectivity of the selected drill sites and the broader Western Rukwa Upper Lake Bed zone, where nine additional shallow helium gas cap look-alike structures have been identified since March 2024.

The company has completed extensive shallow geophysical surveys, including 271 mini-refraction and reflection seismic surveys and multiple shallow electrical resistivity surveys, to better understand subsurface structures and refine drilling targets.

Operational and Seasonal Challenges

Despite readiness to commence drilling, Noble Helium has deferred its shallow gas drilling program due to the onset of seasonal rains, which typically peak in December. The lightweight drill rig and wellheads are prepared for mobilisation, but the company has prudently postponed operations to mitigate weather-related risks and logistical challenges.

Funding Secured to Support Exploration

On the financial front, Noble Helium secured a flexible funding package during the quarter. This includes a convertible securities agreement with Obsidian Global GP LLC to raise up to US$2.5 million through convertible notes. The initial tranche of US$850,000 (approximately A$1.36 million) has been drawn, with further tranches subject to mutual agreement and shareholder approval.

The notes are secured, interest-free unless in default, and convertible at Obsidian’s option at a fixed or variable conversion price. Additionally, the company entered into an At-The-Market (ATM) subscription agreement with Dolphin Corporate Investments, providing up to A$2 million in standby equity capital over two years. This facility offers Noble Helium flexibility to raise capital with minimal dilution and no attached options or rights.

Financial Position and Outlook

As at 31 December 2024, Noble Helium held cash reserves of A$1.6 million. The quarter’s expenditure was primarily directed towards exploration and evaluation activities (A$1.8 million), administration, and corporate costs. The company also benefits from a VAT loan facility and expects to receive significant VAT refunds from the Tanzanian Revenue Authority, which will support ongoing operations.

While the drilling deferral delays immediate progress, the combination of strong helium indicators, comprehensive geophysical data, and secured funding positions Noble Helium well to advance its exploration program in the next dry season.