Helium One Global Ltd’s shares surged approximately 20% following positive news regarding a mining licence offer in Tanzania and successful well results in Colorado. Analyst Ashley Kelty maintains a ‘Buy’ recommendation, projecting a price target of 3.6p per share as the company heads towards production in early 2025.
Shares of Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) experienced a significant increase of approximately 20% in trading on Monday, following two positive developments. As of midday, the stock was priced at 1.08p, reflecting an approximate 18% rise. The company’s latest updates suggest promising progress towards commercial development in Tanzania and successful initial well results in Colorado.
Helium One has received an offer for a Mining Licence (ML) from the Mining Commission in Tanzania, which encompasses the southern Rukwa Helium Project over 480 square kilometers. The company is currently reviewing the offer and its terms. Analyst Ashley Kelty from Panmure Liberum indicated optimism regarding the potential for an imminent formal award of the licence.
“This is a positive sign and we would anticipate that agreement on the terms of the Mining Licence and formal award should be received in the near term,” stated Kelty. The analyst maintains a ‘Buy’ recommendation, projecting a target price of approximately 3.6p per share, noting that the company is on track to commence production in the first half of 2025.
Additionally, Helium One announced the completion of the Jackson-31 well in Colorado, which successfully flowed gas and encountered a 57-foot gas-saturated section in the Upper Lyons Sandstone Formation. The well was drilled to a maximum depth of 1,210 feet, confirming the presence of free gas, and has indicated strong reservoir communication. Further testing is expected as the wellhead configuration is finalized.
In summary, Helium One Global Ltd has demonstrated noteworthy progress with its recent developments in both Tanzania and Colorado, which have positively influenced its stock price. Analysts are optimistic about the potential for further increases as the company prepares to advance towards production. The upcoming mining licence agreement in Tanzania and promising results from Colorado’s well reinforce the company’s growth trajectory and investment appeal.
Original Source: www.proactiveinvestors.com
