/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
SASKATOON, SK, Dec. 22, 2020 /CNW/ - Royal Helium Ltd.
("Royal" or the "Company") (TSXV: RHC) announces that it has
increased and closed the brokered private placement of units
announced on November 30 and
December 9, 2020 (the
"Offering"). The Offering raised gross proceeds of
$6,150,000, inclusive of the full
exercise of the agent's option to increase the size of the
Offering. The lead agent and sole bookrunner on the offering
was Cormark Securities Inc., and included syndicate partners Clarus
Securities Inc., Echelon Wealth Partners Inc., Eight Capital Corp.
and Richardson Wealth Ltd. (collectively, the "Agents")
The net proceeds from the Offering will be used to drill Royal's
initial primary helium exploration wells at its 100% owned Climax
helium project in southwestern Saskatchewan and for general working capital
purposes.
Andrew Davidson, President and
CEO comments, "After extensive exploration work identifying helium
traps and targets on our lands over the known helium bearing
Deadwood formation, we look forward to drilling our first set of
exploration wells in this known (past and current) producing helium
formation in Saskatchewan".
Pursuant to the offering, the Company issued 27,954,545 units at
22 cents per unit, with each unit
consisting of one common share and one-half of one common share
purchase warrant. Each full warrant exercisable at a price of
35 cents for a period of 24 months
following the closing of the offering. The units issued under
the offering are subject to a statutory four month hold period
expiring on April 23, 2021.
In connection with the Offering, the Company has paid to the
Agents a cash commission of 7 per cent of the gross
proceeds, reduced to 5.25 percent for any subscribers on the
presidents list. In addition, the company issued to the Agents
1,837,500 non-transferable compensation warrants (including in
respect of the full exercise of the agent's option). Each
compensation warrant entitles the holder thereof to purchase one
unit at an exercise price per compensation option unit equal to
22 cents for a period of 24 months
following the closing. The units issuable to the Agents are
identical to the units under the Offering. The securities
issued to the Agents are subject to a hold period expiring
April 23, 2021.
Royal advises that certain insiders of the company participated
in the offering, which was completed pursuant to available related
party exemptions under Multilateral Instrument 61-101.
The Offering is subject to certain conditions including, but not
limited to, the receipt of all necessary regulatory and other
approvals including the approval of the TSX Venture Exchange (the
"TSXV").
About Royal Helium Ltd.
Royal is focused on the exploration and development of primary
helium production in southern Saskatchewan. With over 400,000
hectares of prospective helium lands held under permits, leases and
applications, Royal is one of the largest helium leaseholders in
North America. Located next to highways, roads, cities and,
importantly, close to existing oil and gas infrastructure, Royals
projects were methodically evaluated for helium potential for over
two years, and have been vetted by helium experts, professional
geologists and engineers.
For more information, please contact Andrew Davidson, the Chairman, President and CEO
of the Company.
This news release does not constitute an offer to sell, or
the solicitation of an offer to buy securities in any jurisdiction
in which such offer or solicitation would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
The securities described herein have not been, and will not
be, registered under the United States Securities Act of
1933, as amended (the "Securities Act"), or the securities laws of
any state of the United
States, and may not be offered or sold in the United
States or to, or for the account or benefit of, any U.S.
Person (as defined in Regulation S of the Securities Act) or a
person in the United States,
unless an exemption from such registration requirements is
available.
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.