Blue Star Raises 544M Shares at $0.005 to Boost Helium Production
Blue Star Helium Limited has raised up to A$8.2 million through a placement and rights issue to fund production scale-up and further drilling at its Galactica helium project in North America.
- Placement of 544 million shares at A$0.005 each raising A$2.72 million
- Non-renounceable rights issue to raise up to A$5.46 million at same price
- Funds targeted to advance helium production and drilling at Galactica project
- Placement includes free options exercisable at $0.006 expiring June 2026
- Strong support from institutional investors and Managing Director participation
Capital Raising to Fuel Growth
Blue Star Helium Limited (ASX, BNL) has announced a significant capital raising initiative aimed at accelerating the development of its Galactica helium project in North America. The company plans to raise up to A$8.2 million through a combination of a placement and a non-renounceable rights issue, both priced at A$0.005 per new share.
The placement involves issuing 544 million new shares to institutional and sophisticated investors, generating approximately A$2.72 million in gross proceeds. In addition, eligible shareholders will be offered the opportunity to participate in a rights issue to raise a further A$5.46 million. This dual approach is designed to provide the company with the necessary capital to scale up helium production and continue exploration activities.
Advancing the Galactica Project
Blue Star’s Managing Director and CEO, Trent Spry, highlighted the importance of this capital raise as a pivotal moment for the company. With key processing facilities at Galactica now completed and refined, the company is transitioning into a production phase. The new funds will support increasing plant throughput and the drilling of additional wells across the broader Galactica-Pegasus development area, which boasts significant scalability and exploration upside.
The Galactica project represents one of North America’s newest helium production start-ups, positioning Blue Star to capitalize on growing demand for this critical industrial gas. Helium’s unique applications in high-tech industries such as semiconductors, medical imaging, and space exploration underscore the strategic value of expanding production capacity.
Investor Confidence and Shareholder Participation
The placement has attracted strong support from both new and existing sophisticated and institutional investors. Notably, Managing Director Trent Spry has committed to participate in the placement, subject to shareholder approval. Investors will also receive one free option for every two new shares issued, exercisable at $0.006 and expiring on 30 June 2026, providing additional upside potential.
Settlement of the placement shares is expected on 29 December 2025, with quotation anticipated the following day. The rights issue offer document is scheduled for dispatch around 22 December 2025, with shareholders able to apply for additional shares through a top-up facility and shortfall offer, ensuring flexibility in participation.
Looking Ahead
With this capital injection, Blue Star Helium is well positioned to advance its production capabilities and exploration efforts at Galactica. The company’s focus on expanding helium output aligns with the broader market’s increasing demand for this scarce resource, which is essential for various high-tech and industrial applications.
Bottom Line?
Blue Star’s successful capital raise sets the stage for a critical growth phase, but execution on production and exploration milestones will be key to sustaining momentum.
Questions in the middle?
- How quickly can Blue Star scale production to meet rising helium demand?
- What are the potential dilution impacts for existing shareholders from the rights issue?
- How will drilling results across the Galactica-Pegasus area influence the company’s resource estimates?
