Helix Resources Raises $1.98M via Oversubscribed Rights Issue and Placement

Capital Raising Success

Helix Resources Ltd (ASX, HLX) has completed a renounceable rights issue that raised approximately $1.7 million before costs, a figure that notably exceeded initial expectations due to strong demand from both existing shareholders and new investors. To accommodate this excess demand, the company has also announced a follow-on private placement raising an additional $300,000 on the same terms as the rights issue, bringing total funds raised to nearly $2 million.

Strategic Use of Funds

The freshly raised capital is earmarked primarily for advancing Helix’s exploration efforts at two key projects, the White Hills copper-gold project and the Gold Basin mineral resource estimation program, both located in Arizona, USA. These projects are central to Helix’s growth strategy, with White Hills offering promising copper-gold prospects in a region known for world-class deposits, and Gold Basin positioned within a prolific gold trend.

Investor Confidence and Shareholder Support

The oversubscription of the rights issue signals robust investor confidence in Helix’s exploration potential and management’s vision. Executive Chairman Michael Povey expressed gratitude to shareholders for their enthusiastic support, highlighting the company’s strengthened financial position as it embarks on its next phase of development. The follow-on placement also attracted professional and sophisticated investors, further diversifying and strengthening the shareholder register.

Role of Mahe Capital and Option Issuance

Mahe Capital Pty Ltd served as lead manager and underwriter for the rights issue, receiving options as partial consideration for their services. Additionally, Helix plans to issue further options to Mahe Capital as partial payment for advisory services related to the follow-on placement, subject to shareholder approval. These options, along with those issued under the rights issue, are expected to be quoted on the ASX under the code HLXOA, pending regulatory conditions.

Looking Ahead

With the capital raising complete, Helix Resources is well positioned to accelerate its exploration activities, particularly drilling at White Hills and resource estimation at Gold Basin. These efforts will be critical in defining the projects’ potential and attracting further investment. The company’s diversified portfolio, including projects in both the USA and Australia, provides multiple avenues for growth and value creation.