Gold Hydrogen Ltd (ASX:GHY) has received firm commitments for A$14.8 million institutional placement at $0.75 per share to fund and advance a work plan for the Ramsay Project in South Australia.
The offering, aimed at existing and new institutional and sophisticated shareholders, was significantly oversubscribed, underscoring strong market confidence in the company's prospects.
The proceeds from the placement will be used to fund and advance a work plan to undertake further exploration, well testing and project development-related activities on the Ramsay Project.
“Exciting 2024”
Gold Hydrogen managing director Neil McDonald said: “This successful placement sets Gold Hydrogen up for an exciting 2024.
“We are thankful for the ongoing support from our existing shareholders and welcome our new shareholders on this very exciting journey.
“We are looking forward to continuing our exploration campaign and undertaking further analysis of our recent drilling results which have to date validated and confirmed the historical results by finding hydrogen up to 73.3% purity, as well as incredibly high helium concentrations of 6.8% (raw gas).
“Testing and analysis of Ramsay 1 and Ramsay 2 is ongoing but the results to date indicate that the Ramsay Project is potentially a world-class hydrogen and helium project.”
Key highlights
The key highlights from the placement include:
- the offer was materially over-subscribed, endorsing the value proposition in Gold Hydrogen’s Ramsay Project;
- introduction of new well-known resource sector-specific institutional funds strengthening the company’s position and register;
- well-funded with circa $25 million cash plus future R&D tax incentive refunds to further define its highly prospective Ramsay Project; and
- significant commercial opportunities highlighted by the discovery of hydrogen and world-class helium concentrations.
Morgans Corporate Limited acted as lead manager and bookrunner to the offer.
About Gold Hydrogen
Gold Hydrogen is focused on the discovery and development of world-class natural hydrogen gas in a potentially extensive natural hydrogen province in South Australia.
This region has only recently had its natural hydrogen potential identified by the company.
The domestic and global demand for hydrogen, combined with new natural hydrogen exploration techniques and experienced personnel, provides Gold Hydrogen with an extraordinary opportunity to define and ultimately develop a new natural hydrogen gas province.
Furthermore, the company has also found helium in its first two exploration wells.