Royal Helium Ltd. V.RHC.WT.B

Dean on Sparrow Hawk JV

[MarketMakerss]

"If ratified, this is a big leap for [Royal Helium]. CAD $25M for ~½ of Val Marie (up to 5 wells and 1 purification plant). Their cash investment into 1 of 6 near-term projects exceeds the entire market cap of RHC which includes the already producing/selling of helium from Steveville." - Dean Nawata on RHC's $25M JV partnership with Sparrow Hawk to develop the Val Marie Helium Project: https://twitter.com/nawatatweet/status/1790860233079734419?t=KPtXKcNQ2xEKPTH3vKKekg

 

The deal involves two JVs for resource development through well-drilling and other facilities for construction and is beneficial for both parties as RHC gets quicker project development and Sparrow Hawk gains ownership of both the resource and the facility

Posted on Behalf of Royal Helium Ltd.

 

[Margin321]

It is a good deal. Certainly for RHC. Probably for Sparrowhawk as well. But IF RATIFIED are the first two wirds of the post and I had trouble reading further (I already know the  eetails of the deal). If I were Sparrowhawk I would want to see test results on the already drilled first Val Marie well. The have some indication of helium levels, but not any flow testing. It is a big bet for them