Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced that it has taken the first C$5 million drawdown from its C$17.5 million debt facility.
The facility was provided by Canadian Western Bank (TSX:CWB) (CWB) and the Business Development Bank of Canada (BDC). Based on the binding letter agreements, final indenture agreements have been signed by all counter parties and the staged commitments towards the Steveville plant have begun, the company said.
"We are pleased to have the lending process completed and thank both CWB and BDC for their diligence,” CEO Andrew Davidson said in a statement. “This funding is significant for the continued advancement of the Steveville helium processing facility. We continue to be impressed with the progress and quality that Arjae Design Solutions is making with the fabrication of the Steveville helium processing facility.”
With the first helium deliveries on the horizon, Royal Helium is in frequent contact with Arjae, including a successful site visit to the manufacturing facility with all stakeholders on April 4, the company said.
“Manufacturing is progressing steadily and is now 65% complete with only minor and manageable supply chain delays,” Davidson said. “The large, modular, C$25 million plant has been under construction since November of last year with the pre-ordered longer lead items secured, major supply chain disruptions have been avoided.”
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 Andrew Kessel at andrew.kessel@proactiveinvestors.com
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