Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) has completed a previously announced bought-deal financing that generated gross proceeds of more than C$7.2 million.
The company issued over 27.9 million units, each consisting of one common share and one share purchase warrant. Each whole warrant entitles its holder to purchase an additional share at a price of C$0.32 for three years.
The offering was led by Cormark Securities Inc and included Eight Capital and Haywood Securities Inc as underwriters, the company said. The underwriters exercised the first tranche of the over-allotment option amounting to C$256,875.32.
READ: Royal Helium awards Steveville processing plant construction contract to Alberta's Arjae Design Solutions
Royal Helium intends to use the net proceeds from the offering to fund the commencement of various early works projects, as well as the engineering and design related to the construction of its planned helium production plant in Steveville, Alberta.
Saskatoon, Saskatchewan-based Royal Helium plans to become a leading North American producer of helium. It controls over 1 million acres of prospective helium land across southern Saskatchewan and southeastern Alberta.
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