Royal Helium Ltd.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Royal controls over 1,000,000 acres of prospective helium land in 20 separate blocks across southern Saskatchewan and southeastern Alberta. All of Royal's lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, services and labour force with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity.

Royal's helium gas is carried primarily with nitrogen, where in the rest of the world helium is produced as a byproduct of natural gas production. Nitrogen is not considered a greenhouse gas ("GHG") and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 99% less carbon intensive than helium extraction processes in other jurisdictions.

Scarce Commodity

• High value: helium is a strategically important commodity
• Steady demand: medical sector and MRI machines need helium
• Growing demand: increasing usages in high growth industry sectors, such as rocket launches, microchip and LCD manufacturing
• Geopolitics & scarcity of supply: Russian sanctions dramatically impacting supply
• Sustainable: “Primary” helium differentiator – not a by-product of hydrocarbon production

High Quality Assets & Team

• Low risk: existing discoveries with additional prospects well identified in conventional plays
• Attractive economics: low-cost drilling with very shallow decline curves (11 years)
• Proven team: significant operational and value creation track records with 5% ownership from Board and management
• Right geography: Local experience in Saskatchewan, with incentives for helium exploration and development activity
• Saskatchewan Government’s “Helium Action Plan” includes up to 25% rebate in the form of saleable royalty tax credits for both exploration and production facilities

Entering a Period of Significant Growth

• First production: planned for Q1 2023 from the Steveville field
• Drilling portfolio: multiple exploration and development drilling targets, including the Nazare play
• Growth potential: huge runway for growth, geology, a million acres of land and 20+ target areas
• Material upside: associated gases and liquids contained within gas flow stream offer material upsize value

Steveville as a Template

• Drill and Test
• 3rd party resource report (flow rates, permeability, porosity, grade, pay thickness, area, helium in place, NPV estimates)
• Off-take sales agreement signed – multi-year, fixed price, large well-known company, direct to user bypassing the distributor
• Plant engineering and construction

“We are focused on filling the critical supply gap in helium, an essential and irreplaceable element for multiple industries.” – Andrew Davidson, President

Projects in Hand

Steveville Project

Project Summary

• The Steveville asset is located in southern Alberta
• First drilled in 1940 by Standard Oil Company
• Royal Helium operates the asset and holds 100% WI of the asset, acquired through its acquisition of Imperial Helium
• Gross license area of 24,635 Ha
• The Company drilled 3 wells, 2 of which will be the initial production wells
• Total expected gas of 15 million cubic feet (MMcf)/day
• Helium grades of 0.40 – 0.45%
• First offtake partner contract is to deliver Grade-A liquid Helium
• Plant produces 99.999% helium
• Will also produce ~20 million lbs/year food-grade CO2 ($1-$3/lb)
• Produces enough fuel gas to power the plant
• Will produce some (~80bbls/day) saleable condensate
• Facility under construction, debt facility near completion for remaining project plant/equipment funding
• Long term sales agreement signed with a major North American space launch company with a minimum offtake of ~ 40% of Steveville plant capacity
• CPR underpins the attractive economics and resources of this first development using USD$450/mcf pricing

Climax Project

Climax: Duperow & Souris River (Conventional)

• Royal has drilled 3 wells on Climax, discovering resources in a conventional and unconventional plays
• Climax-1 Conventional Well
• – Souris River zone
• – 84 mg/litre lithium
• Climax-2 Conventional Well
• – Duperow and Souris River
• Climax-3 Conventional Well
• – Duperow and Souris River
• Helium tests ranging from 0.33% - 0.64%
• Enormous lateral extent of formation
• 3D Seismic confirms significant target inventory
• Duperow: 8 drill targets
• Souris River: 10 drill targets

Climax: Nazare (Unconventional)

• Previously unmapped zone below conventional helium zones at Precambrian basement
• Thick, unconventional play100 - 300 meters thick with large areal extent of 30+ square miles (conventional pools are 5-10 meter play thickness and 2-4 square miles in area)
• Extensively fractured – ideal for hydraulic fracturing
• Tested 0.65% helium over 100m in DST and 100m in DFIT (test frac)
• Modelled high case 6-month average flow rates of 17 MMcf/day based on a Dual-Leg HZ Well and a well life above 10 MMcf/day of 30+ years
• CPR resource report indicates 1.3 Billion cubic feet of helium in place

Val Marie Project

Multiple Conventional Target Zones

• 6 seismic defined targets
• Initial well drilled in August 2022 – to be completed in Q4/22, with the following reservoirs intersected:
• Duperow
• Souris River
• Deadwood
• Bowdoin Dome
• Bowdoin Dome is a well known oil/gas structure with successful helium wells in Montana
• 60km SE of Climax at the US border

Ogema Project

Initial Helium Target Drilled Outside of the SW Saskatchewan Fairway

• 2 wells drilled by Royal in the fall of 2021
• Helium tests of 0.76% over 11 meters
• Currently acquiring additional rights in the area
• Testing to be completed in Q4/22

Management

Leadership Team and Directors

Andrew Davidson, CPA, CA, President, Chief Executive Officer & Director

Amongst most experienced helium company executives in Canada

Track record in building and monetizing natural resource projects across multiple commodities – including oil, gold and potash

Multiple companies seeded and sold within five years

Chartered Professional Accountant (CPA, CA)

Jeff Sheppard, CPA, CA, Chief Financial Officer & Director

Extensive finance experience in junior resource sector

Chartered Professional Accountant (CPA, CA) with particular expertise in taxation and financial reporting

Worked with the President and CEO for past nine years

Shayne Neigum, Chief Operating Officer & Head of Exploration

Key in identifying and acquiring Royal’s land positions since 2017

Overseen all drilling and completion operations to date

Extensive experience in deephole drilling, land evaluation, geological mapping, formation modelling and reserves analysis

Dean Nawata, Vice President of Corporate Development

Over 30 years public market experience, focusing on financing and development of resource companies

Formerly with Nesbitt Burns, Research Capital Corporation, and Raymond James

John Styles, P.Eng., FEC, Technical Team

Over 40 years experience in the resource industry

Co-founder and chairman of the Edge group of companies

John Pringle, Non-Executive Chairman

A partner in the Saskatoon office of McKercher LLP

Sylvain Labrge, Director

Currently the President and Chief Executive Officer of Gespeg Resources Ltd., and an independent director of Omineca Mining and Metals Ltd.

R. Campbell Becher, Director

Has been actively involved in the investment industry since 1993

Was a Managing Director at Haywood Securities Inc.

Martin Wood, Director

Chairman of Altona Rare Earths Limited, and Managing Director of Vicarage Capital Limited

Kyler Hardy, Director

Over 19 years of experience in the global resource sectors

Currently the CEO of Cronin Group

News Update

On November 15, 2023, The TSX Venture Exchange has accepted for filing documentation with respect to a brokered private placement announced on Nov. 7, 2023, and Nov. 8, 2023.

Private placement -- first tranche

Number of shares: 18.75 million units

Purchase price: 24 cents per unit

Warrants: 18.75 million share purchase warrants to purchase 18.75 million shares

Warrant exercise price: 31 cents for a three-year period

Number of placees: 76 placees

Total existing insider involvement: 820,833 (five insiders)

On November 14, 2023, Royal Helium Ltd. has closed the first tranche of its previously announced underwritten private placement offering of 18.75 million units of the company at an issue price of 24 cents per unit for aggregate gross proceeds of $4.5-million.

The net proceeds from the First Tranche Offering will be used to fund the multi-well operations at the Company's Val Marie, Ogema and Steveville helium projects, along with production facilities design and engineering, and for general corporate purposes.

On November 08, 2023, Royal Helium Ltd. is increasing the size of its previously announced overnight marketed offering of units of the company at a price of 24 cents per unit to $5,175,000 in aggregate gross proceeds. The offering is expected to close in two tranches, with the first tranche being in the amount of $4.5-million and the second tranche being in the amount of $675,000. The company is expected to enter into an underwriting agreement with Research Capital Corp. as the lead underwriter and sole book runner, on behalf of a syndicate of underwriters, including Cormark Securities Inc. and Eight Capital.

The net proceeds from the offering will be used for multiwell completions at Val Marie, Ogema and Steveville, design and engineering for offtake gas facilities, and for working capital and general corporate purposes.

On November 07, 2023, Royal Helium Ltd. has commenced an overnight marketed offering of units of the company at a price of 24 cents per unit for aggregate gross proceeds of $3-million. The offering is anticipated to close on or about the week of Nov. 13, 2023, or such later date as the company and the underwriters may determine. The closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

On November 07, 2023, Royal Helium Ltd. has commenced loading purified helium into specialized ISO trailers at its Steveville helium purification facility, marking the start of commercial sales from its facility located in southeastern Alberta.

"As we prepare our flagship delivery, the company is proud to be entering into this new and exciting phase of our business, making Royal Helium one of the leading, active suppliers of purified helium directly to end-users," said Andrew Davidson, president and chief executive officer.

Volumes from this first facility commences fulfillment of the company's offtake agreement with its major North American aerospace customer, which has contracted to purchase Steveville facility volumes over the next several years. These existing offtake agreements, established over the past two years, deliver volumes at an average price that exceeds $500 (U.S.) per mcf (thousand cubic feet). Given the increasing demand for purified helium, combined with the current geopolitical backdrop further constraining supply of key resources, Royal Helium anticipates a robust pricing environment for the foreseeable future.

On October 12, 2023, Royal Helium Ltd. has completed commissioning of its Steveville helium purification facility and has commenced the start-up of the facility located in southeastern Alberta near the town of Brooks.

"This is a pivotal moment for Royal Helium and all its stakeholders," said Andrew Davidson, president and chief executive officer of Royal. "Only a few short years after we first began drilling our helium wells and 12 months of design, fabrication and construction of the Steveville plant, we are now pleased to announce start-up following the successful completion of the assembly and commissioning phases. Following a successful start-up, Royal will begin ramping up towards full commercial production, making Royal the first publicly listed helium producer operating in Canada."

The Steveville plant is engineered to process 15 million cubic feet per day of raw gas fed by two of the 100-per-cent-owned helium wells at Steveville with an output capacity of approximately 22,000 mcf of 99.999 per cent helium per year. The production capacity of this facility fully delivers on the three-year purchase commitments from Royal's two offtake partner agreements in the major North American aerospace and space launch industries at an average price of $538 (U.S.) per mcf (thousand cubic feet) helium ($730/mcf). Of economic significance, the facility at Steveville has an ultralow operating cost due to it being self-powered by fuel gas co-produced from the two helium wells.

On October 03, 2023, Royal Helium Ltd. has released the results of the company's annual general and special meeting of shareholders, which was held today. All matters presented to shareholders for approval as set out in the company's notice of meeting and management information circular dated Sept. 6, 2023, were approved by an overwhelming majority of the votes cast by the company's shareholders at the meeting. Resolutions approved were to fix the number of directors of the company at eight, the appointment of KPMG LLP, chartered professional accountants, as auditors of Royal, the approval of the company's equity incentive compensation plan in accordance with TSX Venture Exchange Policy 4.4, Security Based Compensation, and the approval of amendments to the articles of Royal.

On July 20, 2023, The TSX Venture Exchange has accepted for filing documentation with respect to a brokered private placement announced June 1, 2023.

Convertible debenture: 7,300 units for an aggregate of $7.3-million in outstanding principal amount of unsecured convertible debentures (Each unit consisted of a $1,000 convertible debenture (convertible into 2,703 common shares) and 2,703 detachable warrants.)

Conversion price: convertible into 19,731,900 common shares at 37 cents per share

Maturity date: June 30, 2025

Interest rate: 12 per cent per annum, paid semi-annually in arrears

On July 20, 2023, Royal Helium Ltd. proposes to issue an aggregate of 303,750 common shares in the capital of the corporation to David T. Young, subject to receiving final acceptance from the TSX Venture Exchange.

The shares will be issued at a deemed price of 40 cents to Mr. Young pursuant to a shares-for-services agreement dated March 20, 2023, between Mr. Young and the company, subject to TSX-V final approval. Mr. Young has provided the company with capital market, financial modelling and forecasting services as an independent contractor for the first half of 2023 ended June 30, 2023. Such common shares to be issued to Mr. Young are at a deemed price per common share permitted under applicable exchange policies. The company plans to settle any outstanding fees owed to Mr. Young by issuing common shares.

On July 07, 2023, Royal Helium Ltd. announced that in accordance with the terms of the issued and outstanding $5.35-million 14.0 per cent senior unsecured convertible debentures due Dec. 31, 2025, issued on Feb. 8, 2023, and the terms of a debenture indenture entered into between Royal Helium Ltd. and Computershare Trust Company of Canada dated Feb. 8, 2023, the company has elected to issue 822,044 common shares in the capital of the company at a deemed price of 35.45 cents to the debenture holders as payment for $291,414.51 in interest owing on the convertible debentures.

On June 30, 2023, The TSX Venture Exchange has accepted for filing documentation relating to an arm's-length asset purchase and sale agreement dated June 22, 2023, between the company, Imperial Helium Corp. (a wholly owned subsidiary of the company) and Acipenser Resources Ltd. (the vendor). Pursuant to the terms of the agreement, the company, through Imperial, will acquire the entire right, title, estate and interest to drill, explore and produce, as well as all surface rights and records not in the public domain for land located near Steveville, Alta.

As total consideration, the company will provide the vendor with a $240,000 cash payment and further issue 468,796 common shares of the company at a deemed price of 34.13 cents per share ($160,000).

On June 29, 2023, Royal Helium Ltd.'s wholly owned subsidiary, Imperial Helium Corp., has agreed to acquire a significant new project located in the vicinity of the company's Steveville asset in Southern Alberta from an arm's-length private company. Pursuant to the terms of a purchase and sale agreement among Royal, the vendor and Imperial, Imperial has now exercised its sole and exclusive one-time option to purchase the asset pursuant to the terms of a revised seismic review and option to purchase agreement between Imperial and the vendor.

Andrew Davidson, president and chief executive officer, states, "As the Steveville helium processing facility nears completion for our first helium production and sales, we are pleased to expand our footprint in Alberta and look toward developing another helium field in the province."

On June 23. 2023, The TSX Venture Exchange has accepted for filing documentation with respect to a brokered private placement announced Dec. 21, 2022.

Convertible debenture: 5,500 units for an aggregate of $5.5-million in outstanding principal amount of unsecured convertible debentures (Each unit consisted of a $1,000 convertible debenture (convertible into 3,846 common shares) and 3,846 detachable warrants.)

Conversion price: convertible into 21,153,000 common shares at 26 cents per share, subject to adjustment in certain events

Maturity date: Dec. 31, 2025

Interest rate: 14 per cent per annum, paid semi-annually in arrears

On June 14, 2023, Royal Helium Ltd. has started shipping the initial modules of the Steveville helium processing facility to site. Rangeland Trucking and Cranes of Airdrie, Alta., began shipping the initial two modules to site from Arjae Design Solutions' fabrication facility, approximately 475 kilometres (295 miles) from Steveville, on June 13. The site preparation for the first two modules has been completed, with the balance of site preparation to be completed by end of week. The remainder of the modules will ship over the next several weeks.

Andrew Davidson, president and chief executive officer of Royal, states: "This is an exciting day for all stakeholders who have been involved with Royal over the past few years. This is a significant milestone for the company as we approach first production." Royal will continue to provide updates as the shipping and installation continues.

On June 13, 2023, Royal Helium Ltd. has awarded the remaining site installation contracts for the Steveville helium processing facility. Vise Energy Services of Lacombe, Alta., has been selected as the lead mechanical contractor with Medallion Energy Services of Grande Prairie, Alta., as lead electrical and instrumentation contractor.

Royal has already contracted Broersen Construction of Brooks, Alta., and DFI Piling of Edmonton, Alta., for the lease construction and civil works, which is nearing completion, and ready for the delivery of the five main process skids and six minor skids by Rangeland Trucking and Cranes of Airdrie, Alta.

Also well under way, Campus Energy Partners of Calgary, Alta., have been contracted to provide engineering, procurement, construction and management for the mid-stream pipeline services. To date, the 12-12 well to facility pipeline (South pipeline) has been completed and the 10-22 well to facility pipeline (North pipeline) has been tested and nears completion.

June 12, 2023, Royal Helium Ltd. has closed its previously announced bought deal private placement of 7,300 non-transferable unsecured convertible debenture units of the company at an issue price of $1,000 per unit for aggregate gross proceeds of $7.3-million. The offering was increased from the previously announced $7-million as a result of excess demand. The offering was conducted pursuant to the terms and conditions of an underwriting agreement among the company, Eight Capital, Research Capital Corp. and Cormark Securities Inc.

The net proceeds of the offering will be used to finance capital expenditures related to the company's Steveville production facilities and for general corporate purposes.

On June 02, 2023, Royal Helium Ltd. has entered into an agreement with Eight Capital, pursuant to which Eight Capital has agreed to purchase for resale, on a bought deal private placement basis, 7,000 non-transferable unsecured convertible debenture units of the company, with a maturity date of June 1, 2026. Each debenture unit shall consist of one 12 per cent unsecured convertible debenture in the principal amount of $1,000 and 2,703 common share purchase warrants. Each warrant shall entitle the holder thereof to purchase one common share of the company at an exercise price of 40 cents per warrant share for a period of 36 months.

The net proceeds of the offering will be used to finance capital expenditures related to the Steveville production facilities, and exploration activities in Saskatchewan and Alberta, and for general corporate purposes.

On May 30, 2023, Effective at the opening, June 6, 2023, the share purchase warrants of the company will trade for cash. The warrants will expire on June 8, 2023, and will therefore be halted at 12 p.m. ET and delisted at the close of business on June 8, 2023.

On May 26, 2023, Royal Helium Ltd. has signed a second multiyear fixed-price offtake sales agreement with a private North American corporation. The new sales agreement is in addition to the previously announced offtake (see news release of Aug. 29, 2022) and represents the remaining capacity from Royal's Steveville helium processing facility located near the town of Brooks in southeastern Alberta, Canada. The new offtake for refined, 99.999 per cent helium represents approximately 50 per cent of the Steveville capacity and is priced at $625 (U.S.)/mcf (thousand cubic feet), net of all transportation and liquefaction costs.

The term of the sales agreement is 36 months, commencing on first delivery with matching terms and conditions of the August, 2022, sales agreement.

On May 26, 2023, Royal Helium Ltd. has appointed Karl F. Kurz to the board of directors. Mr. Kurz has over 40 years of energy industry experience in the public and private markets, including serving as the chief operating officer for Anadarko Petroleum Corp. from December, 2006, through March, 2009, which was acquired by Occidental Petroleum in one of the largest merger and acquisitions in oil and gas history for $55-billion in 2019. In that role, Mr. Kurz had responsibility for global exploration and production, marketing, midstream, land, technology, and engineering services. Mr. Kurz joined Anadarko in 2000 and held various leadership positions in the marketing, midstream, exploration and production areas. Mr. Kurz currently serves on the public boards of several multibillion-dollar corporations, Devon Energy, Texas Pacific Land Corp. and American Water Works, where he is the non-executive independent chairman of the board.

On May 04, 2023, Royal Helium Ltd. has appointed Brent Ziegler to Royal's advisory board as helium technical lead. Mr. Ziegler is currently the Principal Consultant - Helium, Hydrogen, Machinery, and Storage at Progress Through Technology LLC. He previously worked for over 19 years at Air Products and Chemicals ("Air Products") of Allentown, PA, in various positions, most recently as Global Helium Operations Technical Manager. Mr. Ziegler received a Bachelor of Science in Mechanical Engineering from Pennsylvania State University.

On May 01, 2023, Royal Helium Ltd. has appointed David T. Young as executive vice-president and head of United States operations. Mr. Young has more than 20 years of experience as an investor, advisor and operator across a range of industries. For over a decade, Mr. Young has operated with a primary focus on the natural resources space where he has invested in and advised upstream development and midstream operations across North America.

On April 27, 2023, The TSX Venture Exchange has accepted for filing the company's proposal to issue 297,794 common shares at a deemed price of 34 cents per common share, 459,080 common shares at a deemed price of 33 cents per common share and 312,509 common shares at a deemed price of approximately 36 cents per common share to settle an aggregate outstanding debt for $365,746.36 from financial and marketing services previously provided.

Number of creditors: three creditors

Non-arm's-length party/pro group participation: not applicable

On April 24, 2023, Royal Helium Ltd. has taken its first drawdown of $5-million from its $17.5-million debt facility provided by Canadian Western Bank (CWB) and the Business Development Bank of Canada (BDC). Based on the binding letter agreements (see news release of Feb. 6, 2023), final indenture agreements have now been signed by all counterparties and the staged commitments toward the Steveville plant have begun.

Andrew Davidson, president and chief executive officer, comments: "We are pleased to have the lending process completed and thank both CWB and BDC for their diligence. This funding is significant for the continued advancement of the Steveville helium processing facility. We continue to be impressed with the progress and quality that Arjae Design Solutions is making with the fabrication of the Steveville helium processing facility. Manufacturing is progressing steadily and is now 65 per cent complete with only minor and manageable supply chain delays. The large, modular, $25-million plant has been under construction since November of last year, with the preordered longer lead items secured, major supply chain disruptions have been avoided.

"With first helium deliveries approaching, the company's management, engineers and initial offtake customer are in constant contact with Arjae, including a successful site visit to the manufacturing facility with all stakeholders conducted on April 4. We will continue to provide updates as progress is made towards initial production."

On March 30. 2023, Royal Helium Ltd. has appointed Brian Weston of Calgary, Alta., to Royal's advisory board. Mr. Weston has held numerous senior and executive positions with some of Canada's largest oil and gas corporations and has over 40 years of industry experience. Most recently Mr. Weston was Vice President of Mineral Land at Ovintiv Inc. (previously Encana Corporation) until his retirement in 2020.

Andrew Davidson President and CEO comments. "We are pleased to welcome such a well-regarded and experienced oil and gas professional to the Royal team. Brian's involvement in some of the largest natural gas/liquids plays such as the Montney in Alberta/BC and the Duvernay in Alberta, combined with his decades of experience in Western Canada and US, will be invaluable as we continue to develop our Helium E&P portfolio throughout Western North America."

On February 06, 2023, Royal Helium Ltd. has received and signed binding commitment letters with the Business Development Bank of Canada (BDC) and Canadian Western Bank (CWB) acting pari passu for a non-revolving credit facility in the amount of $15-million (see news release Dec. 21, 2022). Proceeds of the credit facility will be used for the development and construction of production facilities currently under construction for the Steveville helium field in Southern Alberta, Canada.

The commitment letter with CWB also includes a revolving $2.5-million demand operating loan (operating line) to be used for working capital purposes. It is anticipated that the debt facilities will close in February when funds are expected to be drawn down. The facilities are subject to regulatory and exchange approvals.

On January 25, 2023, Royal Helium Ltd. has signed an agreement with Guardyan Conservation Corp. for the development of a carbon credit strategy for the Steveville helium recovery plant. Guardyan will also be entering Royal into the voluntary and compliant carbon markets with the development of a carbon credit portfolio through the low emission helium production at Steveville. Further details will be announced as the Steveville plant begins operations.

Andrew Davidson, President and CEO of Royal comments, "This partnership highlights Royal's proactive commitment to high environmental standards with our mandate of ensuring all available GHG emission reduction options are integrated into our facility. Guardyan will focus on maximizing the available carbon credits resulting from the efficient plant design. Royal's cryogenic processing plant design not only has the ability to process helium to 99.999% purity, it commercially processes and captures the other industrial gases in an economically significant way which also leads to the production of salable carbon credits."

On January 23, 2023, Royal Helium Ltd. has initiated its 2023 exploration program in southwest Saskatchewan by flying approximately 5,960 line kilometres of proprietary high-resolution aeromagnetic (HRAM) data over its Cadillac and Swift Current helium properties in southwestern Saskatchewan.

Andrew Davidson, President, and CEO comments, "With construction of our first purification facility well underway at Steveville, we are pleased to begin this year's exploration programs on our helium permit land at Cadillac and Swift Current. The same HRAM program being utilized was a critical factor in the drilling successes at Climax, Val Marie, and Ogema. As an aggressive growth E&P company, we view exploration capex as a critical growth driver for the company and its shareholders."

On January 11, 2023, Royal Helium Ltd. has signed a tolling services agreement with Tumbleweed Midstream LLC of Colorado, under which Tumbleweed will process Royal's 99.999 per cent gaseous helium at its Ladder Creek liquefaction facility into liquid helium. The refined helium gas will be delivered from Royal's helium wells and helium processing plant currently under construction at Steveville, Alta., to Tumbleweed's facility in Colorado. Ladder Creek has warranted that the liquid helium delivered will meet or exceed a purity level of 99.999 per cent in compliance with Compressed Gas Association G-9.1-2014, Commodity Specification for Helium.

On January 10, 2023, Royal Helium Ltd. has closed its previously announced bought deal private placement of 5,500 non-transferrable subscription receipts at an issue price of $1,000 per subscription receipt for aggregate gross proceeds of $5.5-million. The offering was led by Eight Capital. The net proceeds of the offering will be used to finance capital expenditures related to the company's Steveville production facilities and for general corporate purposes.

On December 21, 2022, Royal Helium Ltd. has signed term sheets with the Business Development Bank of Canada (BDC) and a Schedule 1 bank, acting pari passu, for a non-revolving credit facility in the amount of $15-million. The loan bears interest at a rate of 3 per cent above the bank's prime lending rate. Proceeds of the credit facility will be used for development and production facilities currently under construction for the Steveville helium field in Alberta, Canada. The Schedule 1 bank will also provide a revolving demand operating loan of $2.5-million for working capital purposes with a floating interest rate of 2 per cent per annum above prime. Royal Helium has also entered into an agreement with Eight Capital for a $5.5-million bought deal private placement of subscription receipts convertible debenture units (as discussed further below).

Jeff Sheppard, the chief financial officer of Royal, states: "We are pleased to have achieved this major milestone of being fully funded to first production, positioning Royal to deliver helium to our space exploration offtake partner in Q2 2023. Securing debt financing in the traditional bank market through a Canadian Schedule 1 bank and BDC at such favourable rates alongside the bought deal financing not only enhances returns to shareholders but also validates the quality and economics of our Steveville project. Furthermore, this initial project financing will simplify Royal's access to future production facility construction financing."

December 2, 2022, Royal Helium Announces Grant of Incentive Stock Options

https://royalheliumltd.com/news/royal-helium-announces-grant-of-incentive-stock-options/

November 22, 2022, Royal Helium Signs Term Sheet for Project Financing

https://royalheliumltd.com/news/royal-helium-signs-term-sheet-for-project-financing/

October 19, 2022, Royal Helium Announces Closing of Exercise of Over-Allotment Option.

https://royalheliumltd.com/news/royal-helium-announces-closing-of-exercise-of-over-allotment-option/

October 13, 2022, Royal Helium Completes “Bought Deal” Financing

https://royalheliumltd.com/news/royal-helium-completes-bought-deal-financing/

October 12, 2022, Royal Helium Awards Construction Contract for Steveville Helium Processing Plant

https://royalheliumltd.com/news/royal-helium-awards-construction-contract-for-steveville-helium-processing-plant/

  Disclaimer

Copyright (c) 2000 - 2025 Chinese Investment Club Inc.
All Right Reserved. Do not duplicate or redistributed in any form.
版權所有, 未經同意, 不得以任何形式轉載或翻印