ROYAL HELIUM ENTERS INTO INITIAL OFFTAKE AGREEMENT FOR THE SALE OF FOOD AND BEVERAGE GRADE CO2
SASKATOON, SK, March 26, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it has entered into its first offtake agreement (the "Agreement") for the sale of food and beverage grade CO2 from its Steveville Processing and Purification Facility. This initial offtake agreement has a term of three years and will primarily serve markets in the Pacific Northwest Region of the United States.
David Young, President of Royal Helium states, "this agreement marks a significant expansion of the economics of Royal's initial facility, showcasing the Company's commitment to growth and innovation. This agreement not only propels us forward in our mission to sell a diversified set of value-added gases but also serves as a testament to the multifaceted commercial products generated from our facility, which provide multiple economic cash flow streams for shareholders. This first agreement is a testament to our strategic approach to fully monetizing each facility, and we anticipate further opportunities to meet the growing unmet demand for CO2, and purified commercial products, across various underserved markets in the US."
Due to the competitive nature of these negotiations, and the fact that Royal is in continuing negotiations for further contracts, disclosure over volume and price will not be made at this time. Royal Helium will keep the market informed with updates on its CO2 business as they unfold.
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 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
Chief Executive Officer
Royal Helium Ltd.
Neither the 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.
SOURCE Royal Helium Ltd.
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