Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) subsidiary Imperial Helium Corp has agreed to acquire a new project in Alberta, the company announced.
The project, purchased from an arm’s length private company, is located near Royal Helium’s Steveville asset in southern Alberta from an arm's-length private company. The total purchase price of the asset will be $400,000 paid in a combination of cash and stock.
According to the terms of a purchase and sale agreement between Royal, the vendor and Imperial, Imperial has exercised its sole and exclusive one-time option to purchase the asset pursuant to the terms of a revised seismic review and option to purchase agreement between Imperial and the vendor.
"As the Steveville helium processing facility nears completion for our first helium production and sales, we are pleased to expand our footprint in Alberta and look toward developing another helium field in the province,” Royal CEO Andrew Davidson said in a statement.
Royal's geological and engineering team has determined that the newly acquired land in Alberta holds major potential for high flow rate helium enriched gas in the Cambrian and Devonian horizons in at least two structures.
The plan is to conduct an initial drill program in the fall/winter season of 2023, the company said.
“This new project area presented something unique to other areas that we have reviewed, with the presence of existing historic test data demonstrating high flow rate inert gas and confirmed, significant helium concentrations,” said chief operating officer Shayne Neigum.
“Upon completion of the seismic program, which began in the fourth quarter of 2022, it became clear that this will become one of our highest priority areas, as all of the geological features required of a successful helium production reservoir have been confirmed."
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