Month: December 2023

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (TSXV: RHC.WT.A) (“Royal” or the “Company“).  Royal helium is pleased to announce that Royal has officially commenced delivery and sales of purified helium, for its North American aerospace offtake partner. Sales are initiated at Royal’s plant gate from its first helium purification facility located in Princess, Alberta, Canada with the trailers first destined for Colorado to be liquified and with the liquid helium then being transported to the customers site in the US. Royal has ongoing transportation and liquefaction agreements in place with its customer assuming these costs.

Royal’s CEO Andrew Davidson comments, “Today’s delivery is the result of the hard work over the past year by Royal’s team and several top groups and companies involved with the engineering, fabrication, and construction of Royal’s state-of-the-art purification facility. The Steveville plant processes upwards of 15 million cubic feet of raw gas produced by two of Royal’s 100% owned Steveville wells. We are proud to be able to say that the Steveville plant is the first of its kind in the world and has the lowest carbon footprint and emissions amongst any of its peers globally.”

Mr. Davidson continued, “This first delivery occurred just days after the Premier of Alberta, Danielle Smith headlined the inauguration of the Steveville helium purification facility. Though physically located in Newell County, Alberta, the Steveville Purification Facility will connect to Canada and the whole of North America, delivering purified helium to critical industries such as health care, semiconductor manufacturing and small modular reactors (“SMR’s”) for energy.  As Royal moves forward to replicate its upstream to downstream capabilities throughout its sizeable geological landholding footprint, Royal can respond to the ever-growing demand for helium both domestically and overseas.  Canada has always been a strong trading partner with the U.S. and looks to expand relationships even further to Western European and Asian nations to help reduce their dependency on helium supply from less stable supply regions.” 

Royal’s flagship purification facility has entered into offtake agreements relating to 100% of its volumes to a leading North American aerospace and defense firm.  The Company is already in discussions with various other parties regarding offtake purchase commitments from Royal’s purification facilities that are planned for the coming year. 

Executive Vice President and Head of US Operations David Young states further, “While the global supply of helium is increasingly constrained, global demand continues to grow at record pace driven by equally explosive growth across industries dependent upon purified helium to advance their missions.  Key industries reliant on this valuable green gas include healthcare, semi-conductor chip manufacturing, fiber optics, aerospace and defense, and quantum-computing, just to name a few.  A great number of these industries are currently headquartered or operating in the U.S., and many of these industry players, such as semiconductor and chip manufacturers, have already announced multi-billion-dollar expansion initiatives in the U.S.  As one of the only vertically integrated developers and purifiers in North America, Royal intends to be at the forefront delivering highly purified helium to these markets”.

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 (306) 500-9397
spiro@royalheliumltd.com     

Dean Nawata
Business Development
1(306) 500-9420
dean@royalheliumltd.com

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) (TSXV: RHC.WT.A) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce the closing of the second and final tranche of its previously announced underwritten private placement (the “Offering”) for 2,812,500 units of the Company (the “Units“), at an issue price of $0.24 per Unit for additional aggregate gross proceeds of $675,000 (the “Final Tranche Offering“). The aggregate gross proceeds to the Company from the completion of the first and final tranche of the Offering is $5,175,000.

The Offering was conducted pursuant to the terms and conditions of an underwriting agreement (the “Underwriting Agreement“) among the Company, Research Capital Corporation as the lead underwriter and sole bookrunner (the “Lead Underwriter“), on behalf of a syndicate of underwriters, including Cormark Securities Inc. and Eight Capital (together with the Lead Underwriter, the “Underwriters“).

Each Unit consists of one common share in the capital of the Company (a “Common Share“) and one Common Share purchase warrant (a “Warrant“). Each Warrant shall entitle the holder thereof to purchase one Common Share (a “Warrant Share“), at an exercise price of $0.31 per Warrant Share until November 14, 2026. The Offering was conducted pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions, and will not be subject to resale restrictions pursuant to applicable Canadian securities laws.

The net proceeds from the Offering will be used to fund the multi-well operations at the Company’s Val Marie, Ogema and Steveville helium production facilities, design and engineering of the Company’s offtake gas facilities, and for general corporate purposes.

In connection with the Final Tranche Offering, the Underwriters received a cash commission of $40,500 as well as 168,750 broker warrants (the “Broker Warrants“). Each Broker Warrant is exercisable to acquire one Unit for $0.24 and exercisable on or before November 14, 2026.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities described herein have not been and will not be registered under the 1933 Act or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

About Royal Helium Ltd.

Royal Helium 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 Helium’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in 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 (306) 500-9397
spiro@royalheliumltd.com

Dean Nawata
Business Development
1 (306) 500-9420
dean@royalheliumltd.com

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.sedarplus.ca for further information.

Saskatoon, SK, December 8, 2023 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) (“Royal” or the “Company“) announces that in accordance with the terms of the two separate debenture indentures entered into between the Company and Computershare Trust Company of Canada (the “Trustee“) dated February 8, 2023 and dated June 12, 2023 (collectively, the “Debenture Indentures“), it has elected to issue an aggregate of 3,938,120 common shares in the capital of the Company (the “Common Shares“) to the holders of the 14.0% Senior Unsecured Convertible Debentures due December 31, 2025 (the “14% Debentures“) and the holders of the 12.0% Senior Unsecured Convertible Debentures due June 30, 2025 (the “12% Debentures“, together with the 14% Debentures, the “Convertible Debentures“), as payment for the satisfaction of the interest payment of $70.00 for each $1,000 principal amount of 14% Debentures and the interest payment of $66.41 for each $1,000 principal amount of 12% Debentures.

Pursuant to the Debenture Indentures, the Company shall have the right, from time to time (including following conversion, at the time of redemption or at the time of maturity), to make a Common Share interest payment election in respect of any interest obligation under the Debenture Indentures by delivering a notice (the “Notice“) to the Trustee no later than the earlier of: (i) the date required by applicable law or the rules of any stock exchange on which the Convertible Debentures or Common Shares are then listed; and (ii) the day which is 15 business days prior to the interest payment date to which the Common Share interest payment election relates. The Notice shall provide that all or a portion of such interest obligation may be paid by the Company in Common Shares by the delivery of Common Shares, as provided in the Debenture Indenture, in an amount equal to: (A) the amount of interest payable pursuant to such interest obligation divided by (B) the VWAP of the Common Shares for two trading days immediately prior to, and the two trading days immediately following delivery of the Notice.

The issuance of the Common Shares as payment for interest owing on the Convertible Debentures will be subject to the terms and conditions of the Debenture Indentures as well as the receipt of all requisite approvals, including, without limitation, the approval of the TSX Venture Exchange.

About Royal Helium Ltd.

Royal Helium 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 Helium’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in 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 (306) 500-9397
spiro@royalheliumltd.com

Dean Nawata
Business Development
1(306) 500-9420
dean@royalheliumltd.com

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 issuance of the Common Shares in settlement of the amounts owing under the Convertible Debentures. 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.sedarplus.ca for further information on the risks and uncertainties associated with the Company’s business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.