Noble Helium Stakes WA Footprint With Earth Source Hydrogen Acquisition

Noble Helium (ASX: NHE) has signed a binding agreement to acquire Earth Source Hydrogen (ESH), giving it access to about 40,000 square kilometres of helium-prospective acreage in Western Australia.

ESH holds two onshore Special Prospecting Authorities (SPAs) in the Southern Carnarvon Basin, with an exclusive right to apply for an exploration licence in each area and an application underway for a third SPA.

The existing SPAs, SPA-47 AO and SPA-44 AO, are adjacent to EP512 and together cover about 40,000 square kilometres.

The acreage straddles the Yilgarn craton and western sedimentary basins, where Noble Helium considers the geological setting to show strong indications of significant helium potential.

The acquisition would add a WA exploration position to Noble Helium’s portfolio alongside its Tanzania project, where drilling preparations are underway at Kinambo.

WA Exploration Scale

ESH has completed an extensive water bore hole sampling and testing program across both areas, with detailed independent analysis and evaluation of the samples planned following completion of the acquisition.

Noble Helium plans to provide a summary of the results once the transaction is completed and the samples have been assessed.

Further exploration and appraisal will be needed to determine whether significant quantities of potentially moveable helium or hydrogen are present.

“The combined helium exploration portfolio of Noble Helium and ESH is compelling,” executive chair Dennis Donald said.

“The framework for the exploration and development of helium in WA follows the familiar petroleum model and, with helium in such high demand globally, the acquisition of ESH is a timely investment in Noble Helium’s long-term future and international aspirations”.

Share Acquisition Terms

Noble Helium will acquire 100% of ESH through the issue of new Noble Helium shares to ESH shareholders, ESH directors in satisfaction of outstanding director loans, and ESH loan noteholders following conversion of their convertible loan notes.

The number of shares issued will generally be calculated at a 10% premium to Noble Helium’s 30-day volume-weighted average price (VWAP) at completion, with no premium applying to the director loan conversion.

Using the 30-day VWAP of $0.0285 at 17 August as an illustrative basis, Noble Helium would issue 88,867,333 shares under the acquisition agreement.

ESH intends to move toward exploration licence applications over each SPA area, while Noble Helium plans to assess the completed bore hole sampling work as it builds its understanding of the WA acreage.

Completion would broaden Noble Helium’s international helium exploration portfolio, although the acquisition remains subject to its outstanding conditions and either party may terminate the agreement if those conditions are not satisfied or waived.