An Africa-focused developer of helium assets will launch plans for a flotation on London’s junior stock market this week despite the volatility caused by the ongoing conflict in Iran.

MEZIESBLOG understands that Rift Helium, which wants to develop production assets in Tanzania’s Rukwa Basin, is expected to unveil an AIM market flotation to raise about £8m as early as Wednesday morning.

The company intends to commence well-targeting and drilling in the first half of next year, and is understood to be planning to use the proceeds from the flotation to strengthen its balance sheet.

If it goes ahead, the listing would be a rare addition to London’s equity markets during a further period of restrained listing activity in the UK.

The war in Iran has created fresh anxiety for investors amid uncertainty about its impact on the global economy.

However, Rift’s pitch is expected to be that it can offer, in the medium term, an alternative source of helium at a time when global reliance on Qatar for supplies of the gas have been exposed by Iranian missile attacks on the country.

“Rift Helium is seeking to enter the market at a time when helium has become more strategically important than ever,” Charlie FitzRoy, Rift Helium’s chief executive, said.

“Recent disruption to Qatar’s natural gas supply has highlighted how concentrated and vulnerable global helium supply can be, reinforcing the need for new primary helium sources.

“We believe Rift offers investors direct exposure to helium exploration upside in the Rukwa Basin, a basin that is now proven to host a working helium system. 

“Our strategic position, alongside adjacent discoveries, combined with our third-mover advantage, allows us to pursue a smarter, more targeted and capital-efficient exploration strategy.”

Rift Helium’s market capitalisation at the start of trading later this month is expected to be in the region of £15m.

Strand Hanson is acting as nominated and financial adviser on the company’s IPO.