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SASKATOON, SK, July 9, 2020 /CNW/ - Royal Helium Ltd.,
("Royal" or the "Company") (TSXV: RHC) announces the
closing of its oversubscribed private placement of units (the
"Units") announced on June 15,
2020 and expanded on June 29,
2020. Royal raised proceeds of $1,000,000 through the issuance of 20,000,000
Units at a price of $0.05 per Unit
(the "Offering").
Each Unit consists of one common share in the capital of the
Company and one common share purchase warrant. Each warrant
entitles the holder to acquire one common share at a price of
$0.07 for a period of 12 months. The
securities issued under this private placement are subject to a
statutory four-month period ending November
10, 2020.
Mr. Andrew Davidson, President
and CEO of Royal states, "With the financing closed, Royal will be
expanding on its exploration plans and finalizing the targets of
the initial drilling program for helium in Saskatchewan."
Under the Offering certain management and insiders acquired
1,770,000 Units in total. Their participation is considered to be a
"related party transaction" as defined under Multilateral
Instrument 61-101 ("MI 61-101"). The transaction is exempt
from the formal valuation and minority shareholder approval
requirements of MI 61-101 by virtue of the exemptions contained in
sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair
market value of the securities to be distributed in the Offering
nor the consideration to be received for those securities, in so
far as the Offering involves the insiders, exceeds 25% of the
Company's market capitalization. The Company did not file a
material change report in respect of the related party transaction
at least 21 days before the closing of this Offering, as the
Company was not aware of the level of insider's participation in
the Offering at such time.
Of the 20,000,000 Units issued in the Offering, 800,000 Units
were subscribed for by pro group members which have closed in
escrow pending final acceptance of the Offering by the TSX Venture
Exchange. $3,600 of commissions were
paid in conjunction with the financing.
Royal Helium Ltd.
Royal has approximately 400,000 hectares of prospective helium
land in south western and south-central Saskatchewan, held as permits, leases and
pending permits. 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.
For more information, please contact Andrew Davidson, the Chairman, President and CEO
of the Company.
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.