Royal Helium's Bank Line Expands as the Company Prepares to Deliver Additional Helium Trailers to Market from its Steveville Helium Processing Plant
SASKATOON, SK, Jan. 3, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it's senior lenders, Business Development Bank of Canada ("BDC") and Canadian Western Bank ("CWB"), have expanded the Company's debt facilities (see news release of February 6, 2023), increasing them by a total of CAD $3.6 million. Proceeds from the bank facility will fund final costs relating to the Steveville facility and will have the same terms as the prior facility except for the principal repayment start date being moved out to February 2024.
Andrew Davidson, President & CEO of Royal states, "We are appreciative of the ongoing support and confidence by our senior banking partners Canadian Western Bank and the Business Development Bank of Canada. Both CWB and BDC have been strong and steadfast partners to Royal through the Company's Steveville Facility development process, and we are proud to continue and expand upon that relationship as this first-of-its-kind purification facility is now fulfilling its mission to deliver purified helium to end-markets with deliveries officially having commenced."
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 is capable of producing up to 22,000,000 pounds of commercial CO2.
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.
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.
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