/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
SASKATOON, SK, May 17, 2021 /CNW/ - Royal Helium Ltd. (TSXV:
RHC) ("Royal" or the "Company") is pleased to
announce that it has entered into an agreement with a syndicate of
investment dealers co-led by Cormark Securities Inc. and Eight
Capital (the "Underwriters"), which have agreed to purchase,
on a bought deal basis, 20,000,000 units (the "Units") of
Royal at a purchase price of $0.50
per Unit (the "Offering Price"), for aggregate gross
proceeds in the amount of $10,000,000
(the "Offering"). Each Unit will consist of one common share
of Royal (a "Unit Share") and one-half of one common share
purchase warrant (each full warrant, a "Warrant"), each full
Warrant being exercisable to acquire one common share of Royal at a
purchase price of $0.75 for a period
of 24 months following the closing of the Offering, subject to 30
days acceleration on maturity in the event that the common shares
of the Company trade at an average closing price of $1.25 for 10 consecutive trading days.
In addition, the Company has granted the Underwriters an option
to purchase up to an additional 3,000,000 million Units
(representing 15% of the base Offering) at the Offering Price
exercisable within 30 days after the closing of the Offering for
additional gross proceeds in the amount of up to approximately
$1,500,000.
The Offering is scheduled to close on or about June 8, 2021 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals including the approval of the TSX Venture Exchange and
the securities regulatory authorities.
The net proceeds of the Offering will be used to fund
exploration drilling on the Company's lands and for general
corporate purposes.
These securities offered have not been registered under the
United States Securities Act of 1933, as amended, and may
not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements.
About Royal Helium Ltd.
Royal is focused on the exploration and development of primary
helium production in southern Saskatchewan. With over 400,000 hectares of
prospective helium lands held under permits, leases and
applications, Royal is one of the largest helium leaseholders in
North America. Located next to
highways, roads, cities and importantly close to existing oil and
gas infrastructure, Royal's projects were methodically evaluated
for helium potential for over two years, and have been vetted by
helium experts, professional geologists and engineers.
For more information, please contact Andrew Davidson, the Chairman, President and CEO
of the Company.
This press release shall not constitute an offer to sell or
solicitation of an offer to buy the securities in any jurisdiction.
The common shares will not be and have not been registered under
the United States Securities Act of 1933 and may not be offered or
sold in the United States absent
registration or applicable exemption from the registration
requirements.
Caution regarding forward-looking information:
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.
SOURCE Royal Helium Ltd.