Canadian helium producer Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced an extension of its debt facilities by C$3.6 million, facilitated by senior lenders Business Development Bank of Canada (BDC) and Canadian Western Bank (CWB).
The additional funding will be directed towards covering final expenses associated with the Steveville facility, the company said in a statement.
Notably, the terms of the bank facility remain consistent with the previous arrangement, except for a shift in the principal repayment start date to February 2024.
The Steveville plant, located in Alberta, is engineered to process 15,000,000 cubic feet/day of raw gas from two wholly-owned helium wells. It is set to produce 22,000 mcf of 99.999% helium annually, with an expected plant life of 25 years and the wells are anticipated to remain operational for a minimum of nine years.
In addition to helium, the facility will generate fuel gas for its own operations and has the capacity to produce up to 22,000,000 pounds of commercial CO2.
Andrew Davidson, President & CEO of Royal, expressed gratitude for the ongoing support from BDC and CWB.
"Both CWB and BDC have been strong and steadfast partners to Royal through the company's Steveville Facility development process, and we are proud to continue and expand upon that relationship as this first-of-its-kind purification facility is now fulfilling its mission to deliver purified helium to end-markets with deliveries officially having commenced,” Davidson told shareholders.
Saskatoon, Saskatchewan-based Royal Helium operates as an exploration, production, and infrastructure firm. The company holds more than 1 million acres of promising helium permits and leases in southern Saskatchewan and southeastern Alberta.