Royal Helium Approved to Receive $3 Million Investment from the Government of Canada
SASKATOON, SK, Feb. 1, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it has been approved to be a recipient of a contribution of CAD $3 million (the "Contribution") from the Government of Canada through Prairies Economic Development Canada ("PrairiesCan") under its Aerospace Regional Recovery Initiative.
The funds received by Royal serve as reimbursement for expenditures incurred to equip and enhance operations at the Steveville Helium Processing Facility in Alberta. Under the terms of the agreement, repayment of the Contribution will commence on April 1, 2025 and will thereafter be amortized with 60 equal monthly interest free payments. The Company has the right to repay the full amount of the contribution at any time.
Andrew Davidson, CEO of Royal comments, "Having worked with PrairiesCan on these funding programs for almost a full year, we are pleased to have been approved to be the recipient of this support from their aerospace recovery program. PrairiesCan has been an excellent working partner to date and we are excited to advance our assets outside of Steveville with the proceeds of this funding."
"Our government is working in partnership with industry to achieve a net-zero economy by 2050 while creating new opportunities for investment and innovation in the clean technology sector on the Prairies," said the Honourable Dan Vandal, Minister for PrairiesCan. "Today's investment will enable Royal Helium Ltd. to continue positioning itself as a leader in adopting emission reduction technologies as it works to meet the growing global demand for Canadian-produced helium."
"This funding approval is tied directly to the significant offtake agreement that Royal has signed with one of the leading space launch companies in North America and is the result of months of work between our office and the professionals at PrairiesCan," added Andrew Davidson. "Sourcing interest free and zero equity dollars that we can use to advance our other properties moves us materially closer to bringing additional production facilities to bear, for the benefit of all of our shareholders and stakeholders. With Royal's one-of-a-kind Steveville helium processing facility and our commitment to low greenhouse gas production, we are dedicated to growing and expanding the helium business in Western Canada with world class innovation."
PrairiesCan is the federal department that supports economic growth in Alberta, Saskatchewan and Manitoba. Its programs and services help businesses, not-for-profits and communities grow stronger. Its mandate is to support economic growth and diversification in the Prairie provinces and advance the interests of the region in national economic policy, programs and projects. Learn more at www.prairiescan.gc.ca.
Royal 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'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
Chief Executive Officer
Royal Helium Ltd.
Neither the 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.
SOURCE Royal Helium Ltd.
please contact the Company: Spiro Kletas, VP Investor Relations, 1 (306) 500-9397, [email protected]; Dean Nawata, Business Development, 1(306) 500-9420, [email protected]
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