Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) said it has increased its previously announced bought deal agreement to C$7 million.
The company had earlier revealed plans to raise up to $5 million through a financing led by Cormark Securities Inc.
Under the revised term sheet, Royal Helium will now issue 26,925,000 units at a price of $0.26 per unit, up from 19,231,000 units at the same price.
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Each unit will consist of one common share of Royal and one common share purchase warrant, with each warrant being exercisable to acquire one common share at $0.32 for a period of 36 months following the closing of the offering.
In addition, the company has granted the underwriters an option to purchase up to an additional 2,884,650 units, representing 15% of the base offering, at the offering price exercisable within 30 days after the closing for additional gross proceeds of up to $750,009.
The net proceeds will be used to fund engineering and design costs associated with the company's production plant planned for Steveville, completion and exploration activities on the company's lands and for general corporate purposes.
The offering is scheduled to close on October 13, 2022.
Royal controls over 1,000,000 acres of prospective helium land in southern Saskatchewan and southern Alberta.
--Updated with revised offering--
Contact the author at jon.hopkins@proactiveinvestors.com