HyTerra Ltd (ASX:HYT) will pocket around A$6.1 million in a capital-raising initiative to fund a multi-well exploration drilling program focused on hydrogen and helium along the Nemaha Ridge in Kansas, USA.
The funding comprises a placement to sophisticated and professional investors and a fully underwritten non-renounceable rights issue to eligible shareholders.
Shares for the placement will be issued at $0.018 each, reflecting a roughly 5% discount on HyTerra's last trading price before the announcement.
Growth activities
The company's drilling campaign is set to begin in the third quarter of 2024, with the capital raising effort aimed at supporting this initiative and other growth activities.
HyTerra's exploration targets span more than 9,600 acres in a region known for its natural hydrogen, with previous successful recoveries of hydrogen and helium.
The funds raised will also contribute to leasing high-priority acreage, acquiring geophysical data and advancing project and prospect evaluations.
The placement raised $878,400 through the issue of around 48.8 million shares.
RM Corporate Finance was appointed as lead manager for the placement.
Additionally, a rights issue aims to raise about A$5.24 million, with the terms including four new shares for every nine existing shares held by eligible shareholders.
The rights issue, underwritten by RM Corporate, includes a notable sub-underwriting commitment by director Benjamin Mee.
Proceeds from these fundraising efforts will be instrumental in advancing HyTerra’s drilling program and its strategic goals in the burgeoning hydrogen and helium sectors.