Royal Helium (TSXV: RHC) has apparently signed on to a major supply agreement, the details of which it is electing to not disclose. The firm this morning simply stated that it has “entered into a long-term agreement with a major North American space launch company for the supply of helium.”
Further details on just whom it is set to become a supplier for were not provided.
The firm is expected to begin deliveries under the supply program next year in 2023, with production first set to come from a facility being constructed at its Steveville, Alberta operations, which it obtained via the acquisition of Imperial Helium earlier this year. A helium facility at Climax, Saskatchewan will then follow shortly thereafter, with combined throughput expected to amount to 20,000 mcf/day.
The firms VP of Corporate Development, Dean Nawata, indicated that the company is subject to “strict non disclosure” on the transaction. He commented separately that the transaction is believed to be one of the first in the industry, with it being a long term contract with a major company, and the buyer being an end user rather than a distributor.
Details on quantities to be supplied or the rate to be paid for the helium were not provided.
Royal Helium last traded at $0.38 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
