Noble Helium Raises $12M to Advance North Rukwa Drilling Amid Helium Supply Crunch

Global Helium Supply Shock Boosts Noble Helium's Strategic Position

Helium markets have been rattled by escalating conflict in the Middle East, severely curtailing Qatar’s helium production and exports. Industry estimates suggest up to 35% of global bulk helium supply is disrupted for potentially three to five years, sparking spot price jumps of 35% to 50% since March. With traditional suppliers like the US consuming most helium domestically and Russia limiting exports, the scramble for geopolitically neutral helium sources has intensified. Noble Helium (ASX:NHE) is primed to capitalise on this upheaval with its North Rukwa project in Tanzania, touted as one of the world’s largest helium reserves behind the US and Qatar.

The company’s Executive Chairman Dennis Donald highlighted that helium is now viewed with the strategic importance akin to rare earths and critical minerals, underpinning new technologies and economic growth. Noble Helium has already initiated talks with gas aggregators and energy firms eyeing future offtake opportunities from North Rukwa’s helium potential.

$12 Million Capital Raise to Power Upcoming Drilling Campaign

To accelerate exploration, Noble Helium announced a $12 million before-cost equity placement in two tranches at $0.029 per share, with $4 million raised in April and the remaining $8 million subject to shareholder approval at an Extraordinary General Meeting slated for early June 2026. The placement price reflects a 24.3% discount to the 15-day VWAP and a 40.8% discount to the last closing price on 31 March, underscoring the company’s need to secure capital swiftly.

Alongside the placement, the company plans to convert approximately $6.7 million of existing loans into equity, including secured convertible notes raised earlier this year and VAT loan facilities, pending shareholder approval. This financial restructuring aims to strengthen Noble Helium’s balance sheet ahead of the drilling push. The company’s recent convertible loan note raise of $2.138 million and director loans provide further liquidity to manage short-term obligations. These steps build on earlier funding rounds and loan renegotiations that have stabilised Noble Helium’s financial footing. The placement was strongly supported by predominantly new institutional and sophisticated investors, reflecting renewed market confidence in the company’s strategy and governance reforms.

Refined Drilling Program Targets High-Quality Helium Accumulations

Noble Helium has refined its 2026 drilling campaign at North Rukwa to focus on two confirmed wells plus two contingent wells, prioritising the Kinambo prospect ahead of shallower targets. Independent expert analysis of Gravity Gradiometry anomalies suggests multiple substantial gas accumulations likely containing helium, bolstering the project’s prospectivity. The company plans to deploy a fit-for-purpose BoreXpert drilling rig, currently on standby at no cost, to reduce campaign costs compared to its maiden high-cost drilling program at Mbelele.

Preparations for the drilling campaign, scheduled to commence in the June quarter, include reprocessing 3D seismic data to better image deep targets. The campaign aims to prove and expand North Rukwa’s gas-phase helium resource along the western margin, with a focus on cost-effective data collection and assessment. The project’s multi-stage approach targets early cashflow generation within 18 months from smaller-scale operations, supporting longer-term development of deeper, larger helium plays such as Chilichili and Gege.

Governance Overhaul and Expert Advisory Board Strengthen Execution

February 2026 saw significant governance enhancements with the appointment of two new non-executive directors, Jamie Clarke and Amanda Burgess, bringing deep energy sector experience and corporate governance expertise. Executive Director Justyn Wood stepped down from the board to concentrate on technical leadership of the drilling campaign.

The establishment of an Advisory Board comprising international helium and energy experts Simon Potter, Professors Chris Ballentine and John Gluyas marks a milestone for Noble Helium. Their combined expertise in helium geoscience, energy exploration, and project development is expected to guide the company through critical phases of exploration and commercialisation, particularly in the African context.

Financial Challenges and VAT Loan Restructuring

Noble Helium continues to navigate financial headwinds, including a VAT loan facility originally set to mature in December 2025. The company reached an agreement with lenders to partially repay and roll over the loan with a revised maturity in June 2027 and reduced interest rates. Several lenders have conversion rights into equity, aligning creditor interests with shareholder value. The company has engaged PricewaterhouseCoopers to appeal a Tanzanian Revenue Authority decision denying VAT refunds, a key cash flow component. Meanwhile, short-term director loans have provided working capital support during this transitional phase.

As at 31 March 2026, Noble Helium held a modest cash balance of $45,000, excluding the $4 million tranche 1 placement proceeds received post quarter. Quarterly exploration expenditure was $605,000, reflecting ongoing technical and appraisal work on North Rukwa. The company’s cash runway was limited but bolstered by recent capital raises and loan conversions, positioning it to fund its imminent drilling program.

The company’s operational and financial turnaround, including cost-cutting, governance reforms, and debt restructuring, has laid the groundwork for the upcoming drilling campaign that could unlock significant helium resources in a geopolitically stable jurisdiction. The market’s renewed focus on helium’s strategic importance and supply vulnerabilities adds urgency and potential upside to Noble Helium’s exploration efforts.

These developments build on earlier funding and strategic milestones, including the company’s $3.86M funding boost and $12M institutional placement, underscoring a consistent trajectory toward unlocking North Rukwa’s potential.