Noble Helium Ltd. has agreed to acquire 100 per cent of UK-registered Earth Source Hydrogen Ltd. (ESH), securing access to approximately 40,000 square kilometres of highly prospective helium exploration acreage in Western Australia.
Through its Australian subsidiaries, ESH holds two onshore Special Prospecting Authorities, SPA-44 AO and SPA-47 AO, in the Southern Carnarvon Basin, with the exclusive right to apply for exploration licences in both areas, as well as an application underway for a third.
The acreage straddles the Yilgarn craton and western sedimentary basins, a geological setting exhibiting key structural indicators for significant helium accumulation.
An extensive water bore hole sampling program across both SPAs has already been completed, with detailed independent analysis set to be released following transaction completion.
Under the terms of the agreement, Noble Helium will acquire ESH by issuing fully paid ordinary shares to ESH shareholders. Share calculations incorporate a 10 per cent premium to Noble Helium’s 30-day volume-weighted average price (VWAP). Based on a 30-day VWAP of 2.8 cents as at August 17, approximately 88.87 million new NHE shares will be issued.
Noble Helium Executive Chairman Dennis Donald noted the transaction’s alignment with the company’s growth targets.
“The combined helium exploration portfolio of Noble Helium and ESH is compelling,” Donald said.
“ESH gives us exposure to a large and highly prospective helium exploration acreage in Western Australia that complements our existing Tanzania project where drilling preparations are underway at Kinambo.”
ESH Managing Director David Biggs added that the merger leverages complementary acreage and technical capabilities as ESH prepares to apply for formal exploration permits.
“ESH sees the combination with Noble Helium as benefitting both companies with each bringing complementary acreage and technical skills to the merger.”
Completion remains subject to customary due diligence and shareholder acceptances, with initial share allotments expected in September.