/NOT FOR DISSEMINATION IN OR INTO THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES/
SASKATOON, SK, Nov. 14,
2023 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (OTCQB:
RHCCF) ("Royal" or the "Company") is pleased to
announce the closing of the first tranche of its previously
announced underwritten private placement offering of
18,750,000 units of the Company (the "Units"), at
an issue price of $0.24 per Unit for
aggregate gross proceeds of $4,500,000 (the "First Tranche
Offering").
The First Tranche Offering was conducted pursuant to the terms
and conditions of an underwriting agreement (the "Underwriting
Agreement") among the Company, Research Capital Corporation as
the lead underwriter and sole bookrunner (the "Lead
Underwriter"), on behalf of a syndicate of underwriters,
including Cormark Securities Inc. and Eight Capital (together with
the Lead Underwriter, the "Underwriters").
Each Unit consists of one common share in the capital of the
Company (a "Common Share") and one Common Share purchase
warrant (a "Warrant"). Each Warrant shall entitle the holder
thereof to purchase one Common Share (a "Warrant Share"), at
an exercise price of $0.31 per
Warrant Share for a period of 36 months following the closing of
the First Tranche Offering. The First Tranche Offering was
conducted pursuant to the listed issuer financing exemption under
Part 5A of National Instrument 45-106 – Prospectus
Exemptions, and will not be subject to resale restrictions
pursuant to applicable Canadian securities laws.
The net proceeds from the First Tranche Offering will be used to
fund the multi-well operations at the Company's Val Marie, Ogema and Steveville helium projects, along
with production facilities design and engineering, and for general
corporate purposes.
In connection with the First Tranche Offering, the Underwriters
received a cash commission of $245,970 as well as 1,024,875 broker warrants
(the "Broker Warrants"). Each Broker Warrant is exercisable
to acquire one Unit for $0.24 and
exercisable on or before November 14,
2026. In addition, the Underwriters received
25,125 advisory broker warrants on the same terms as the
Broker Warrants.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities described herein have not been and
will not be registered under the 1933 Act or any state securities
laws and may not be offered or sold within the United States or to, or for account or
benefit of, U.S. Persons (as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
About Royal Helium Ltd.
Royal Helium 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 Helium'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
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.sedarplus.ca for further information.
For more information, please contact the Company.
SOURCE Royal Helium Ltd.