Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced it has awarded a construction contract to start fabrication and commissioning of its first helium processing plant for its Steveville project.
The contract was awarded to Arjae Design Solutions Ltd of Nisku, Alberta, Royal Helium said in a statement.
The Steveville 14-12 Helium Recovery Plant will be located approximately 40 kilometres north of Brooks, in southeastern Alberta.
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The plant's operating throughput will be in the range of 10 to 15 million cubic feet per day, producing a purity level of 99.999% helium, with the final helium product compressed to a delivery pressure of 3,000 pounds per square inch gauge and directed to a three-tube trailer loading system.
Minimum delivery for Royal's first multi-year, fixed price, sales agreement represents approximately 40% of this plant's capacity, according to a statement.
Meanwhile, site preparation works have been initiated and procurement of long lead items has started, Royal Helium told investors.
"Facilitated by Obsidian Engineering of Calgary, we are pleased to award Arjae with the fabrication and commissioning of our first helium processing plant for Steveville,” Andrew Davidson, Royal Helium’s CEO said in a statement.
“Arjae's proprietary engineering designs provide several substantial economic benefits to Royal over other helium separation plant designs. The Steveville plant will produce the highest grade 99.999% helium, food-grade carbon dioxide, high value condensate and fuel gas to power the entire facility."
Saskatoon, Saskatchewan-based Royal Helium plans to become a leading North American producer of helium. It controls over one million acres of prospective helium land across southern Saskatchewan and southeastern Alberta.
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