Looks like full steam ahead - $6 million in the coffers Royal Helium closes $6.15-million private placement
2020-12-22 15:33 ET - News Release
Mr. Andrew Davidson reports
ROYAL HELIUM INCREASES & CLOSES $6.15 MILLION ON OVERSUBSCRIBED BROKERED PRIVATE PLACEMENT FINANCING
Royal Helium Ltd. has increased and closed the brokered private placement of units announced on Nov. 30 and Dec. 9, 2020. The offering raised gross proceeds of $6.15-million, 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.
The net proceeds from the offering will be used to drill Royal's initial primary helium exploration wells at its 100-per-cent-owned Climax helium project in southwestern Saskatchewan and for general working capital purposes.
Andrew Davidson, president and chief executive officer, 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 is 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 per cent 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.
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.
We seek Safe Harbor.