DME C$20 Million Share Offering with First Helium now in H2'23

Desert Mountain Energy launched a C$20mm equity raise through Beacon Securities with pricing to be determined. We are surprised that Desert Mountain is looking to raise such a substantial amount having not provided any guidance on the resource size being developed, the potential production rates or any financial projections. The majority of the funds will be directed towards a 2nd helium plant (C$16.4mm) and drilling of two wells (C$2mm). G&A for the company is estimated at C$2.6mm over the next 12 months. The offering is expected to close around March 22. According to its timetable, testing of the McCauley facility will take place through Q2'23; first helium sales will not be until Q3'23 or Q4'23 - a substantial delay. DME also said it is looking to expand beyond Arizona and the US.

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