Noble Helium has successfully renegotiated key debt facilities and raised over $3.8 million in new funding, setting the stage for a pivotal drilling campaign in Tanzania’s North Rukwa helium project in 2026.
- Discharge of Obsidian convertible loan via $1.46M secured loan from major shareholder
- Renegotiation of $4.35M VAT shortfall loan maturity to June 2027
- Raised $2.15M through secured convertible loan note post-quarter
- Additional $250,000 unsecured loan from Executive Chair Dennis Donald
- Drilling campaign planning completed for North Rukwa project’s western margin
Financial Restructuring and Funding Milestones
Noble Helium Limited has taken significant strides in stabilising its financial footing during the December 2025 quarter, a crucial period marked by behind-the-scenes negotiations and capital raising efforts. The company successfully discharged its convertible loan facility with Obsidian Global GP, LLC, thanks to a $1.46 million secured loan advanced by major shareholder Duncan MacNiven. This move not only eliminated a key debt burden but also freed the company from associated security over its assets.
In parallel, Noble Helium renegotiated the maturity terms of a $4.35 million VAT shortfall loan related to unpaid Tanzanian tax recoveries. The new maturity date has been extended to 30 June 2027, providing the company with much-needed breathing room to pursue its VAT refund appeal with the Tanzanian Revenue Authority. This appeal process remains ongoing, with professional advisors engaged to navigate the complex tax dispute.
Capital Raising and Cash Position
Post quarter-end, Noble Helium raised $2.15 million through a secured convertible loan note issued to professional, wholesale, and sophisticated investors. Additionally, Executive Chairman Dennis Donald contributed a further $250,000 via an unsecured, interest-free loan. These injections bolster the company’s working capital, which stood at a precarious $28,000 at the end of December 2025, excluding these new funds.
Despite the low cash balance reported, the company expresses confidence in its ability to continue operations and meet business objectives, citing strong shareholder support and the recent successful capital raises as key factors.
Advancing the North Rukwa Helium Project
Operationally, Noble Helium has completed detailed planning for a multi-well drilling campaign targeting the western margin of its flagship North Rukwa helium project in Tanzania. This basin is recognised globally for its helium potential, possibly ranking as the world’s third largest reserve behind the USA and Qatar.
The upcoming drilling program aims to appraise shallow free-gas leads identified in previous exploration, with up to five wells planned. The campaign will leverage a cost-effective rig adapted for water wells and geothermal drilling, significantly reducing operational risks and expenses compared to earlier high-cost oil and gas rigs.
The company’s in-country team has secured access agreements with local farmers and finalised field engineering preparations, signalling readiness to move from planning to execution in 2026. Noble Helium emphasises disciplined capital management and cost control as it seeks to de-risk the helium system and build value for shareholders.
Corporate and Governance Updates
During the quarter, Noble Helium appointed Amanda Burgess as Company Secretary, bringing over 30 years of experience in corporate governance and financial accounting. This appointment strengthens the company’s governance framework as it navigates complex operational and financial challenges.
Meanwhile, payments to related parties, including director salaries, were disclosed in line with ASX requirements, reflecting transparent corporate practices.
Bottom Line?
With financial hurdles addressed and drilling plans set, Noble Helium’s 2026 execution phase will be critical to validating its helium resource potential and securing its future.
Questions in the middle?
- What is the timeline and likelihood of success for the VAT refund appeal in Tanzania?
- How will the upcoming drilling results impact Noble Helium’s valuation and funding prospects?
- What are the company’s contingency plans if further capital is required before drilling generates cash flow?