- Desert Mountain Energy (DME) is announcing a private placement for gross proceeds of up to C$5M
- The company will use the funds for exploration and development of its helium projects
- The minimally dilutive capital raise will help offset inflation-based costs
- Desert Mountain Energy is focused on the exploration, development and production of helium, hydrogen and noble gases
- Desert Mountain Energy (DME) is unchanged trading at $2.95 per share
Desert Mountain Energy (DME) will offer a private placement for gross proceeds of up to C$5M.
It will offer up to 1.667M units priced at $3 per unit. The company may increase the offering up to 1.75M units at its sole discretion.
Each unit consists of one common share and one share purchase warrant.
Each warrant is exercisable into one additional share priced at $4 for three years from the date of closing. Expiry may be accelerated if DME shares reach $8 for ten consecutive trading days.
The company will use the funds for exploration and development of its helium projects, as well as for working capital and general corporate purposes.
“We, like every other company, are dealing with inflationary and supply chain bottleneck pressures,” said Robert Rohlfing, CEO of Desert Mountain Energy. “Having a healthy treasury has been invaluable in staying ahead of inflation by prepaying for essential components of our business such as cement, fuel and steel. This raise with minimal dilution allows us to continue with that strategy.”
Desert Mountain Energy is focused on the exploration, development and production of helium, hydrogen and noble gases.
Desert Mountain Energy (DME) is unchanged trading at $2.95 per share as of 9:30 am EST.
