SASKATOON, SK, April 24,
2023 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV:
RHC.WT) (OTCQB: RHCCF) ("Royal" or the "Company") is
pleased to report that it has taken its first drawdown of CAD
$5 million from its CAD $17.5 million debt facility provided by Canadian
Western Bank ("CWB") and the Business Development Bank of
Canada ("BDC"). Based on the
binding letter agreements (see news release of February 6, 2023), final indenture agreements
have now been signed by all counter parties and the staged
commitments towards the Steveville plant have begun.
Andrew Davidson President and CEO
comments. "We are pleased to have the lending process completed and
thank both CWB and BDC for their diligence. This funding is
significant for the continued advancement of the Steveville helium
processing facility. We continue to be impressed with the progress
and quality that Arjae Design Solutions is making with the
fabrication of the Steveville helium processing facility.
Manufacturing is progressing steadily and is now 65% complete with
only minor and manageable supply chain delays. The large, modular,
CAD $25 million plant has been under
construction since November of last year with the pre-ordered
longer lead items secured, major supply chain disruptions have been
avoided.
With first helium deliveries approaching, the Company's
management, engineers and initial offtake customer are in constant
contact with Arjae, including a successful site visit to the
manufacturing facility with all stakeholders conducted on
April 4th. We will continue to
provide updates as progress is made towards initial
production."
About Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land
across southern Saskatchewan and
southeastern Alberta. All of
Royals' 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 90% 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 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.
SOURCE Royal Helium Ltd.
