Noble Helium funding update

Noble Helium (ASX:NHE) has secured a Convertible Securities Agreement with Obsidian Global GP LLC. This agreement aims to raise up to US$2.5 million, supporting the company's exploration activities and providing essential working capital. The initial tranche of US$850,000 has already been drawn.

Summary of funding agreement and future outlook

Noble Helium Limited has entered into a Convertible Securities Agreement with Obsidian Global GP LLC, securing up to US$2.5 million in funding. The funding will aid in exploration activities, license renewals, and provide working capital. The agreement includes an initial tranche of US$850,000 already drawn, with future tranches available subject to mutual agreement. The Convertible Notes are interest-free unless in default and have a 36-month maturity. Conversion terms include a fixed price of A$0.10 and a variable price determined by market conditions, with specific restrictions on variable conversions until 2025. The notes are secured with a fixed charge over certain assets, and the company retains the option to repay with a premium. Shareholder approval is required for subsequent tranches, while the agreement ensures compliance with ASX regulations. The funding structure offers a flexible financing solution aligning with Noble Helium's strategic objectives.

Executive commentary on funding arrangement

CEO Shaun Scott emphasized the strategic advantage of the funding structure in advancing exploration projects and maintaining financial flexibility.