Proactive Investors - Royal Helium Ltd (TSXV:RHC) said it has signed a second multiyear fixed-price offtake sales agreement with a private North American corporation for the remaining capacity from its helium processing facility at Steveville in southeastern Alberta.
The company said the sales agreement is for 36 months, starting on the first delivery, with the same terms and conditions as its August 2022 helium supply agreement with a major North American space launch company.
It noted that the new offtake for refined 99.999% helium represents approximately 50% of the Steveville capacity and is priced at US$625 mcf (thousand cubic feet), net of all transportation and liquefaction costs.
"As the commissioning of our first helium processing facility approaches, we are pleased to now have sales commitments for all of Steveville's capacity,” Royal Helium president and CEO Andrew Davidson said in a statement.
“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."
Royal Helium 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, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land near existing helium-producing locations. The firm intends to become a leading North American producer of the high-value commodity.