First Helium raises C$2 million through private placement

First Helium Inc. (TSXV:HELI)(OTCQB: FHELF)(FRA:2MC) announced a non-brokered private placement offering of 40 million units at C$0.05 per unit for aggregate gross proceeds of C$2 million.

Each unit consists of one common share and one transferrable warrant. The warrants are exercisable at prices between C$0.10 to C$0.15 per share, depending on the exercise date, for 36 months from issuance, subject to an acceleration clause.

The company plans to use net proceeds to fund additional asset development and operating expenses on its Worsley project, along with general working capital requirements.

The warrants include an acceleration provision where First Helium may accelerate the expiry date if the 10-day volume-weighted average trading price equals 50% or greater than the current exercise price. In such cases, the company can issue a press release making the expiry date the 30th day following the announcement.

The offering closure requires regulatory approvals, including TSX Venture Exchange acceptance. All securities will be subject to a four-month hold period under Canadian securities laws.

Company insiders may participate in the private placement. Such participation would be considered a related party transaction under Multilateral Instrument 61-101 but will be exempt from formal valuation and minority shareholder approval requirements.

First Helium operates over 53,000 acres along the Worsley Trend in Northern Alberta, where it has conducted exploration and development drilling activities. The company's operations include both helium exploration and oil production activities on its Worsley land base.

The information is based on a company press release statement.

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