20:28:08 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Royal Helium Ltd (2)
Symbol RHC
Shares Issued 239,254,543
Close 2023-02-03 C$ 0.325
Market Cap C$ 77,757,726
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Royal Helium signs commitment letters for credit line

2023-02-06 10:27 ET - News Release

Mr. Andrew Davidson reports

ROYAL HELIUM ANNOUNCES THE STEVEVILLE HELIUM PLANT IS FULLY FUNDED WITH THE EXECUTION OF BINDING COMMITMENT LETTERS FOR $17.5 MILLION IN CREDIT FACILITIES AND THE RELEASE FROM ESCROW OF THE CONVERTIBLE DEBENTURES

Royal Helium Ltd. has received and signed binding commitment letters with the Business Development Bank of Canada (BDC) and Canadian Western Bank (CWB) acting pari passu for a non-revolving credit facility in the amount of $15-million (see news release Dec. 21, 2022). Proceeds of the credit facility will be used for the development and construction of production facilities currently under construction for the Steveville helium field in Southern Alberta, Canada.

The commitment letter with CWB also includes a revolving $2.5-million demand operating loan (operating line) to be used for working capital purposes. It is anticipated that the debt facilities will close in February when funds are expected to be drawn down. The facilities are subject to regulatory and exchange approvals.

Royal Helium also announces that following the receipt of the aforementioned commitment letters, the remaining conditions have been waived by the debentureholders to release from escrow the aggregate gross proceeds of $5.5-million from the previously closed bought deal private placement of convertible debenture units (see news release of Jan. 10, 2023). The company expects the release of funds from escrow and issuance of convertible debentures and warrants on or about Feb. 10.

President and chief executive officer Andrew Davidson stated: "Securing debt facilities with two leading banking institutions in Canada is a significant milestone in the completion of our first helium production plant. It validates the feasibility and profitability of Royal's projects. We are grateful for the partnership support of senior lenders at CWB and the BDC and look forward to growing our relationship further with additional production facilities in the near future. Together with the early release of the convertible debentures, the Steveville helium production plant is now fully funded, including the working capital required to see first production in the second quarter [of] 2023."

About Royal Helium Ltd.

Royal controls over one million acres of prospective helium land across Southern Saskatchewan and southeastern Alberta. All of Royal's lands are in close vicinity to highways, roads and cities and, importantly, close to existing oil and gas infrastructure, with a significant portion of its land near 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 with 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 99 per cent less carbon intensive than helium extraction processes in other jurisdictions.

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