This is a screen capture of a 3D rendering walkthrough of their Steveville, Alta., helium purification facility under construction. Royal Helium

Helium produced from the wellhead and purified is compressed for sale. But to move one more step up the value chain, that compressed helium needs to be liquified. And on Jan. 11, Royal Helium Ltd. announced it has a partner that will do just that.

The impact for the company is substantial, as Royal will go from being an explorer of helium to a producer with a sales market and revenue stream.

Last fall, Royal announced it had an agreement with an organization which launches rockets into space. Helium is important for rocketry, used to flush tanks with the inert gas.

Royal announced on Jan. 11 that it has signed a tolling services agreement with Tumbleweed Midstream LLC, of Colorado under which Tumbleweed will process Royal’s 99.999% gaseous helium at its Ladder Creek Liquefaction Facility into liquid helium. The refined helium gas will be delivered from Royal’s helium wells and helium processing plant currently under construction at Steveville, Alberta to Tumbleweed’s facility in Colorado. Ladder Creek has warranted that the liquid helium delivered will meet or exceed a purity level of 99.999% in compliance with Compressed Gas Association G-9.1-2014 Commodity Specification for Helium.

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Royal president and CEO Andrew Davidson said in a release, “We are pleased to be working with Ladder Creek as our tolling services provider for the liquefaction of Royal’s refined gaseous helium. Liquefaction is a crucial step in both Royal’s production process and our off-take partner’s purchase process, as gaseous helium cannot be stored or transported over long distances. Ladder Creek’s location and processing capabilities and specifications align perfectly with our off-take partner’s delivery requirements.”

The primary term of this agreement is for three years, through to December 31, 2025, and is renewable on a year-to-year basis thereafter. Ladder Creek will process up to 24 million cubic feet of crude helium per year for Royal with provisions for some excess if capacity allows.

A 3D rendering walkthrough released by Royal Helium showed trucks as the mode of transportation from its planned Steveville facility, as seen in the embedded LinkedIn post below:

 

The company is working on building its second helium purification facility near Climax, Saskatchewan.

On Jan. 10, Royal announced the closure of its previously announced bought deal private placement of 5,500 non-transferrable subscription receipts at an issue price of $1000 per Subscription Receipt for aggregate gross proceeds of $5,500,000. The offering was led by Eight Capital, the underwriter.

The net proceeds of the offering will be used to fund capital expenditures related to the Company’s Steveville production facilities and for general corporate purposes.

 

  • 0041 DEEP Since 2018 now we are going to build
    0041 DEEP Since 2018 now we are going to build
  • 0040 Southeast College safety tickets
    0040 Southeast College safety tickets
  • 0036 Prairie Lithium - Chad Glemser 30 Sec
  • 0033 Buffalo Potash Jared Small Footprint
  • 0032 IWS Summer hiring rock trailer music
  • 0029 Latus Viro updated Latus phone
  • 0025 Kendalls
  • 0026 Buffalo Potash Quinton Salt
  • 0023 LC Trucking tractor picker hiring mix
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0019 Jerry Mainil Ltd hiring dugout
  • 0018 IWS Hiring Royal Summer
  • 0014 Buffalo Potash What if PO
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0004 Royal Helium PO Ad 02
  • 9001
  • 0002

 

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