SASKATOON, SK, May 26, 2023
/CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF)
("Royal" or the "Company") is pleased to announce
that it has signed a second, multi-year, fixed price off take sales
agreement (the "Sales Agreement") with a private North American
corporation. The new sales agreement is in addition to the
previously announced off take (see news release of August 29, 2022) and represents the remaining
capacity from Royal's Steveville Helium processing facility located
near the town of Brooks in southeastern Alberta, Canada. The new offtake for refined,
99.999% helium represents approximately 50% of the Steveville
capacity and is priced at USD $625/mcf, net of all transportation and
liquefaction costs.
The term of the Sales Agreement is 36 months, commencing on
first delivery with matching terms and conditions of the
August 2022 sales agreement.
Andrew Davidson President and CEO
comments. "As the commissioning of our first helium processing
facility approaches, we are pleased to now have sales commitments
for all of Steveville's capacity. The Steveville facility is fed by
two of Royal's 100% owned helium wells and is designed to produce
99.999% refined helium gas which will be liquefied in Colorado under our previously announced
tolling agreement."
About Royal Helium Ltd.
Royal is an exploration, production and infrastructure company
with a primary focus on the development and production of helium.
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 CEO
Royal Helium Ltd
1 (306) 653-2695
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FORWARD-LOOKING INFORMATION
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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.
