SASKATOON, SK, Aug. 29, 2022 /CNW/ – Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) is pleased to announce that it has entered into a long-term agreement with a major North American space launch company for the supply of helium. Initial deliveries under the supply agreement will commence in 2023.
Royal is also pleased to announce that with the engineering of its initial processing facilities largely complete, supply and construction contracts are currently being awarded. The Company will be constructing two initial facilities, the first at Steveville, Alberta and the second at Climax, Saskatchewan. The combined throughput capacity of the plants will be 20,000 mcf/day (20 million cubic feet per day gas input).
Andrew Davidson, President and CEO, Royal Helium comments, “We would like to thank our new partner for their substantial commitment to Royal Helium and Royal’s low carbon helium production programs. Royal aims to be a leading, greener source of helium for the aerospace, high tech, medical, and manufacturing industries worldwide”.
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.
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