02/09/2021 - 15:14

Grand Gulf raises $3.3m to fund acquisition

02/09/2021 - 15:14

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Grand Gulf Energy is raising $3.3 million to fund the acquisition of Australian helium business Kessel Resources.

Grand Gulf is buying Kessel Resources, which has an interest in the Red Helium project in Utah. Photo: Grand Gulf Energy

Grand Gulf Energy is raising $3.3 million to fund the acquisition of Australian helium business Kessel Resources.

Kessel is a privately owned company, with an interest in the Red Helium project in Utah.

Subiaco-based Grand Gulf said the merger would add a significant helium exploration opportunity to its existing oil and gas portfolio.

Chairman Craig Burton said the company was well-placed to take the advantage of one of the world’s most scarce commodities. 

“The merger with Kessel creates an emerging helium exploration company with drill-ready prospects in a highly sough after helium-rich region,” he said.

Grand Gulf will issue 330 million shares under the placement, priced at one cent each.

It will use some of the funds raised to complete drilling activities.

Shares in the company closed up 42 per cent to trade at 17 cents each.

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