Month: June 2023

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce that that its wholly-owned subsidiary, Imperial Helium Corp. (“Imperial“), 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 (the “Vendor“).  Pursuant to the terms of a purchase and sale agreement among Royal, the Vendor and Imperial (the “Purchase and Sale Agreement“) 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 & CEO 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.”

Royal’s geological and engineering team has determined that the newly acquired land in Alberta holds significant potential for high flow rate helium enriched gas in the Cambrian and Devonian horizons in at least two structures identified in the acquired and reprocessed 2D seismic. Royal has plans for an initial drill program for the fall/winter season of 2023. Details will be provided once the program is finalized.

The Asset includes 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.

Shayne Neigum COO comments, “This new project area presented something unique to other areas that we have reviewed, with the presence of existing historic test data demonstrating high flow rate inert gas and confirmed, significant helium concentrations.  Upon completion of the seismic program, which began in the fourth quarter of 2022, it became clear that this will become one of our highest priority areas, as all of the geological features required of a successful helium production reservoir have been confirmed.”

Pursuant to the terms of the Purchase and Sale Agreement, the total purchase price for the Asset will be $400,000 consisting of a combination of cash consideration and a number of common shares in the capital of the Company (the “Common Shares“) that represents the equivalent of $160,000, with such Common Shares to be at a deemed value as the volume-weighted average market price of the Common Shares for the five (5) Business Days prior to the closing date, or such other deemed price as prescribed and acceptable to the TSX Venture Exchange, which amounts to 468,796 Common Shares at a deemed price of $0.3413. No finders fees are payable in connection with the transaction and no non-arm’s length parties are involved in the transaction.

About Royal Helium Ltd.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium.  The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.

Royal’s helium reservoirs are carried primarily with nitrogen. 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 90% less carbon intensive than helium extraction processes in other jurisdictions.

Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.

For more information, please contact the Company:

Spiro Kletas
VP Investor Relations
1 (604) 723-0710
spiro@royalheliumltd.com      

Dean Nawata
Business Development
1(604) 561-2821
dean@royalheliumltd.com

Media enquiries:
royalhelium@celicourt.uk

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the Company’s intended use of the net proceeds of the Offering. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce that the initial modules of the Steveville Helium Processing Facility have started shipping to site.  Rangeland Trucking and Cranes of Airdrie, Alberta began shipping the initial two modules to site from Arjae Design Solutions’ fabrication facility, approximately 475 kilometers (295 miles) from Steveville, on June 13th. 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 & CEO 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.

Steveville Helium Processing Plant

The Steveville plant is designed to process 15,000,000 cubic feet/day of raw gas fed by the two 100% owned helium wells at Steveville, Alberta and produce 22,000 mcf of 99.999% helium per year. The engineered life of the plant is 25 years while both wells are expected to remain on stream for a minimum of 9 years. The plant will also produce enough fuel gas to power the plant and up to 22,000,000 pounds of commercial CO2, which provides for a potentially significant secondary cash flow stream to Royal.

About Royal Helium Ltd.

Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases.  The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.

Royal’s helium reservoirs are carried primarily with nitrogen. 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 90% less carbon intensive than helium extraction processes in other jurisdictions.

Andrew Davidson                                                      
President and Chief Executive Officer                                                          
Royal Helium Ltd.                                                      

For more information, please contact the Company.

Spiro Kletas
VP Investor Relations                                                                                    
1 (604) 723-0710
spiro@royalheliumltd.com     

Dean Nawata
Business Development
1(604) 561-2821
dean@royalheliumltd.com

Media enquiries:
royalhelium@celicourt.uk

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the Company’s intended use of the net proceeds of the Offering. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce that it has awarded the remaining site installation contracts for the Steveville helium processing facility. Vise Energy Services of Lacombe, Alberta has been selected as the lead Mechanical contractor with Medallion Energy Services of Grande Prairie, Alberta as lead Electrical and Instrumentation contractor. 

Royal has already contracted Broersen Construction of Brooks, Alberta and DFI Piling of Edmonton, Alberta for the lease construction and civil works, which is nearing completion, and ready for the delivery of the 5 main process skids and 6 minor skids by Rangeland Trucking and Cranes of Airdrie, AB. 

Also well underway, Campus Energy Partners of Calgary, Alberta have been contracted to provide engineering, procurement, construction and management for the midstream 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.

John Styles, Royal’s lead engineer comments, “The Steveville Facility fabrication and construction project is on track to be completed and onstream in Q3 of this year. We, along with Obsidian Engineering are very pleased with the coordinated effort and quality of the preparation and construction work at site which will be ongoing through July to be followed by Arjae and contractors Vise and Medallion to commission and startup the plant.”

Steveville Helium Processing Plant

The Steveville plant is designed to process 15,000,000 cubic feet/day of raw gas fed by the two 100% owned helium wells at Steveville, Alberta and produce 22,000 mcf of 99.999% helium per year. The engineered life of the plant is 25 years while both wells are expected to remain on stream for a minimum of 9 years. The plant will also produce enough fuel gas to power the plant and up to 22,000,000 pounds of commercial CO2, which provides for a potentially significant secondary cash flow stream to Royal.

About Royal Helium Ltd.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium and associated gases.  The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity. 

Royal’s helium reservoirs are carried primarily with nitrogen. 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 90% less carbon intensive than helium extraction processes in other jurisdictions.

Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.

For more information, please contact the Company.

Spiro Kletas
VP Investor Relations
1 (604) 723-0710
spiro@royalheliumltd.com

Dean Nawata
Business Development
1 (604) 561-2821
dean@royalheliumltd.com

Media enquiries:
royalhelium@celicourt.uk 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the Company’s intended use of the net proceeds of the Offering. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information. 

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce the closing of its previously announced “bought deal” private placement of 7,300 non-transferable unsecured convertible debenture units of the Company (the “Debenture Units“), at an issue price of $1000 per unit for aggregate gross proceeds of $7,300,000 (the “Offering“). The Offering was increased from the previously announced $7,000,000 as a result of excess demand. The Offering was conducted pursuant to the terms and conditions of an underwriting agreement (the “Underwriting Agreement“) among the Company, Eight Capital (the “Lead Underwriter“), Research Capital Corporation and Cormark Securities Inc. (together with the Lead Underwriter, the “Underwriters“).

Andrew Davidson, President & CEO states, “We are pleased to have this financing completed and report that management and the board participated for over 10% of this Offering, showing our commitment and alignment with all stakeholders of Royal. The net proceeds of this raise are being used for ancillary midstream equipment and services related to the commissioning of the Steveville helium processing facility that are outside the scope of the project financing already in place for the facility. Proceeds will also allow the Company to reinitiate exploration activities over other projects in Saskatchewan and Alberta.”

Each Debenture Unit consists of one 12% unsecured convertible debenture in the principal amount of $1,000 (a “Convertible Debenture“) with a maturity date of June 30, 2025 (the “Maturity Date“) and 2,703 common share purchase warrants (each, a “Warrant“). Each Warrant shall entitle the holder thereof to purchase one common share (a “Share“) of the Company (a “Warrant Share“), at an exercise price of $0.40 per Warrant Share for a period of 36 months.

The Convertible Debentures will be convertible at the holder’s option into Shares at any time prior to the close of business on the earlier of the business day immediately preceding the Maturity Date and the date fixed for redemption of the Convertible Debentures at a conversion price of $0.37 per Share (the “Conversion Price“).

Interest on the Convertible Debentures will accrue commencing on June 12, 2023, (the “Closing Date“) at a rate of 12% per annum and shall be payable semi-annually in arrears, beginning on December 31, 2023. At the Company’s option, provided no event of default has occurred and is continuing and provided all applicable regulatory approvals have been obtained (including any required approval of any stock exchange on which the Shares are listed), interest may be paid in cash or paid-in-kind through the issuance of freely tradable Shares. The number of Shares to be issued in satisfaction of the Company’s interest obligation shall be calculated based on the VWAP of the Shares for the two trading days immediately prior to, and the two trading days immediately following the notice from the Company that it has elected to satisfy its interest obligations in Shares.

The gross proceeds from the sale of the Debenture Units, less the expenses related to the Offering (the “Proceeds“) were paid by the Underwriters to the Company on the Closing Date in accordance with the terms of the Underwriting Agreement. The Company paid the Underwriters a cash fee equal to 6.0% of the gross proceeds of the Offering (other than in respect of certain subscribers on the President’s List for which no commission was paid).

The net proceeds of the Offering will be used to fund capital expenditures related to the Company’s Steveville production facilities and for general corporate purposes.

The Convertible Debentures and the Warrants comprising the Debenture Units will not be listed on any stock exchange, though the Company has received the conditional approval of the TSX Venture Exchange (the “TSXV“) to list the Shares issuable upon conversion of the Convertible Debentures and exercise of the Warrants on the TSXV.

The Convertible Debentures and the Warrants comprising the Debenture Units (and any Shares issuable upon conversion or exercise thereof, as applicable) are subject to a four-month and one day statutory hold period under applicable Canadian securities laws, ending October 13, 2023.

About Royal Helium Ltd.

Royal controls over 1,000,000 acres of prospective helium land 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, 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 reservoirs are carried primarily with nitrogen. 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the Company’s intended use of the net proceeds of the Offering. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

SOURCE Royal Helium Ltd.

For more information, please contact the Company.

Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
1 (306) 653-2692
davidson@royalheliumltd.com

Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce that it 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 (the “Debenture Units“), with a maturity date of June 1, 2026 (the “Maturity Date“). Each Debenture Unit shall consist of one 12% unsecured convertible debenture in the principal amount of $1,000 (a “Convertible Debenture“) and 2,703 common share purchase warrants (each, a “Warrant“). Each Warrant shall entitle the holder thereof to purchase one common share (“Share“) of the Company (a “Warrant Share“), at an exercise price of $0.40 per Warrant Share for a period of 36 months.

The Convertible Debentures will be convertible at the holder’s option into Shares at any time prior to the close of business on the earlier of the business day immediately preceding the Maturity Date and the date fixed for redemption of the Convertible Debentures at a conversion price of $0.37 per Share (the “Conversion Price“).

Mr. Andrew Davidson, President and CEO of Royal states “we are pleased to have secured the funding required to both complete the final preparation of the Steveville plant, inclusive of all associated midstream and logistics costs, and to advance exploration activities in Saskatchewan and Alberta. We are excited to initiate our cash flow engine at Steveville which was recently enhanced by the signing of a 2^nd offtake contract at a price of US$625/MCF. With the full production from Steveville now allocated, we are beginning the process of defining the next round of volumes that we can bring to market. Management and the Board are excited about the continued growth prospects for the Company and will be participating as part of the Presidents list which will be a minimum of $1.0 million.”

The interest on the Convertible Debentures shall be payable semi-annually in arrears, beginning on December 31, 2023. At the Company’s option, provided no event of default has occurred and is continuing and provided all applicable regulatory approvals have been obtained (including any required approval of any stock exchange on which the Shares are listed), interest may be paid in cash or paid-in-kind through the issuance of freely tradable Shares. The number of Shares to be issued in satisfaction of the Company’s interest obligation shall be calculated based on the four-day VWAP of the Shares commencing two trading days immediately prior to the notice from the Company that it has elected to satisfy its interest obligations in Shares.

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

The Convertible Debentures and the Warrants comprising the Debenture Units (and any Shares issuable upon conversion or exercise thereof, as applicable) will be subject to a statutory hold period in Canada of four months and one day following the Closing Date. The offering is subject to normal regulatory approvals, including approval of the TSX Venture Exchange, and is expected to close on or about June 9, 2023.

As any directors and officers of the Company that participate in the offering are insiders of the Company, their participation in the offering is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company will rely on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for exemptions from the requirements to obtain a formal valuation and minority shareholder approval, respectively, because the fair market value of their participation will be below 25% of the Company’s market capitalization for the purposes of MI 61-101.

About Royal Helium Ltd.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.

Royal’s helium reservoirs are carried primarily with nitrogen. 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 90% less carbon intensive than helium extraction processes in other jurisdictions.

For more information:

Spiro Kletas
VP Investor Relations
1 (604) 723-0710
spiro@royalheliumltd.com

Dean Nawata
Business Development
1(604) 561-2821
dean@royalheliumltd.com

Media enquiries:
royalhelium@celicourt.uk

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.