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SASKATOON, SK, June 15, 2020 /CNW/ - Royal Helium Ltd., ("Royal"
or the "Company") (TSXV: RHC) announces that it has arranged a
non-brokered private placement offering up to 10,000,000 units of
the Company at a price of $0.05 per
unit (the "Units") for gross proceeds of $500,000. Each Unit consists of one common share
of the Company and one common share purchase warrant with each
warrant entitling the holder to acquire one common share at
$0.07 for a period of 12 months
following the closing of the offering.
Royal, along with its technical partner, Axiom Exploration Group
have successfully completed a Tri-Axial Gradiometer Magnetic survey
over one of Royal's premier Helium land packages near Climax, Saskatchewan. Axiom is currently
processing and conducting a full interpretation of the survey data.
The newly acquired detailed deep magnetic data will further refine
the stratigraphic traps and deep basement structures over Royal's
first set of priority helium drill targets identified earlier by
seismic, well logs and drill stem tests. Results and drill targets
will be announced once processed and received.
The net proceeds from the offering will be used to continue work
on a preliminary downstream scoping study and design for an
integrated processing facility, additional geophysical exploration
activities, investor relations activities to frame and market the
Company for the subsequent raising of drilling capital, and for
general working capital.
Royal advises that the insiders of the Company may participate
in the financing, which will be completed pursuant to available
related party exemptions under Multilateral Instrument
61-101. The offering is subject to TSX Venture Exchange
approval and all securities are subject to a four-month hold
period. Finders' fees may be payable in connection with the
financing, all in accordance with the policies of the TSX Venture
Exchange and applicable securities laws.
Royal Helium Ltd.
Royal has approximately 400,000 hectares of prospective helium
land in south western and south-central Saskatchewan. All of Royal's lands are in
close proximity to highways, roads, cities and importantly, close
to existing oil and gas infrastructure, with a significant portion
of its land in close proximity to existing helium producing
locations. With stable, rising prices and limited, non-renewable
sources for helium worldwide, Royal intends to become a leading
North American producer of this high value commodity.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release includes certain statements that may be deemed
to be "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
events or developments that management of the Company expects, are
forward-looking statements. Although management believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking
statements, include market prices, exploration and development
successes, continued availability of capital and financing, and
general economic, market or business conditions. Please see
the public filings of the Company at www.sedar.com for further
information.
SOURCE Royal Helium Ltd.