Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) said the Climax/Nazare project has received approval from the Minister of Energy and Resources of the Government of Saskatchewan and the Saskatchewan Petroleum Innovation Incentive (SPII) program.
Under the terms of the approval, Royal Helium can receive up to $4,227,185 in royalty tax credits based on eligible project costs incurred to date at Nazare.
"We are extremely pleased with the agility the Saskatchewan government has shown in quickly implementing their new Helium Action Plan and how quickly they have been able to process and approve our first submission,” Andrew Davidson, Royal Helium president and CEO said in a statement.
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“An obvious benefit to Royal now and going forward, this program provides Saskatchewan operators with a significant cost advantage over most jurisdictions in North America. All proceeds received or royalties saved by Royal as a result of this program will be re-invested into the continued expansion of our helium production plans in Saskatchewan," he added.
Additional royalty tax credits will be applied for on an ongoing basis for eligible costs associated with expenditures such as the upcoming horizontal wells drilled into Nazare, construction of processing facilities, and all other applicable programs into the future, the company said.
Royal Helium anticipates receiving the first credits during the current quarter, with the remainder to come as the project continues to advance. The royalty tax credits are readily transferable and salable within the province. Any transfers and/or sales will be reported in the company's quarterly financial statements.
Royal Helium controls over 1,000,000 acres of prospective helium land in southern Saskatchewan and southeastern Alberta.
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