Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced that it has signed a tolling services agreement with Colorado’s Tumbleweed Midstream LLC, in which Tumbleweed will process Royal's 99.999% gaseous helium at its Ladder Creek Liquefaction Facility into liquid helium.
The helium project developer said the primary term of the agreement is for three years, through to December 31, 2025, and is renewable on a year-to-year basis thereafter.
“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,” Royal Helium CEO Andrew Davidson said in a statement.
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“Ladder Creek's location and processing capabilities and specifications align perfectly with our off-take partner's delivery requirements,” Davidson added.
Royal Helium noted that 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.
The company added that 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.
As well, Royal Helium stated that 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.
Saskatoon, Saskatchewan-based 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.
Contact Sean at sean@proactiveinvestors.com