Listed helium explorer Grand Gulf Energy was asking investors...

Listed helium explorer Grand Gulf Energy was asking investors for $8 million Thursday morning to spend on its exploration wells in Utah and for working capital.

Helium balloon at epernay, in Champagne region of France. Supplied.

The offer was priced at 4.4¢ a share, a 10.2 per cent discount to the last traded price.

It included a one-for-three attaching option with an 8¢ strike price and three-year expiry.

Grand Gulf’s flagship project is Red Helium in Utah in the United States. The company’s got drill permit for the Jesse#1 well with drilling expected to start mid-April, the term sheet said. It has an offtake agreement with Paradox Resources, which owns a helium processing plant 20 miles north of Red Helium.

Potential investors were told to think of supply-side issues in Helium. The term sheet said US government’s BLM Cliffside’s safety violations and Amur facility’s fire had put pressure on the supply and especially the US spot prices. The two together accounted for up to 30 per cent of global helium supply, the term sheet said.

Evolution Capital and CPS Capital were the joint lead managers. They called for bids by 1pm Thursday.

The company would have a $64.5 million market capitalisation on a pro forma basis.