Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced it has received C$3 million from Canada's government through the Prairies Economic Development Canada to reimburse its expenses to equip and enhance operations at the Steveville Helium Processing Facility in Alberta.
The funds were granted under the Government’s Aerospace Regional Recovery Initiative.
"Having worked with PrairiesCan on these funding programs for almost a full year, we are pleased to have been approved to be the recipient of this support from their aerospace recovery program,” Royal Helium CEO Andrew Davidson said in a statement.
“PrairiesCan has been an excellent working partner to date and we are excited to advance our assets outside of Steveville with the proceeds of this funding."
Under the agreement's terms, the repayment of the contribution will begin on April 1, 2025, and will be amortized with 60 equal monthly interest-free payments. The company retains the right to repay the full amount at any time.
PrairiesCan is the federal department supporting economic growth in Alberta, Saskatchewan, and Manitoba.
The Honourable Dan Vandal, Minister for PrairiesCan, emphasized the government's commitment to achieving a net-zero economy by 2050 and creating new opportunities for investment and innovation in the clean technology sector on the Prairies. "Today's investment will enable Royal Helium to continue positioning itself as a leader in adopting emission reduction technologies as it works to meet the growing global demand for Canadian-produced helium."
The funding approval is directly tied to the significant offtake agreement that Royal has signed with one of the leading space launch companies in North America.
"Sourcing interest-free and zero-equity dollars that we can use to advance our other properties moves us materially closer to bringing additional production facilities to bear, for the benefit of all of our shareholders and stakeholders,” Davidson added.
Royal Helium controls over one million acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta.