May 25, 20232 min
Royal announced an off take agreement with an undisclosed private North American corporation for the remaining capacity at Steveville. The term of the contract is 3 years, commencing on first delivery (no penalties for delayed start-up) and the price has improved by 39% from its previous contract with a space launch company signed in August 2022, demonstrating the strength and tightness in the helium market. The contract is priced at US$625/mcf net of all transportation and liquefaction costs. The gas will be purified to 99.999% (“five nines”) helium and transported by trailer to the Ladder Creek helium plant in Colorado for liquefaction.
Press Release:
Royal Helium Ltd is pleased to announce that it has signed a second, multi-year, fixed price off take sales agreement with a private North American corporation. The new sales agreement is in addition to the previously announced off take and represents the remaining capacity from Royal’s Steveville Helium processing facility located near the town of Brooks in southeastern Alberta, Canada. The new offtake for refined, 99.999% helium represents approximately 50% of the Steveville capacity and is priced at USD $625/mcf, net of all transportation and liquefaction costs.
The term of the Sales Agreement is 36 months, commencing on first delivery with matching terms and conditions of the August 2022 sales agreement.
Andrew Davidson President and CEO comments. “As the commissioning of our first helium processing facility approaches, we are pleased to now have sales commitments for all of Steveville’s capacity. The Steveville facility is fed by two of Royal’s 100% owned helium wells and is designed to produce 99.999% refined helium gas which will be liquefied in Colorado under our previously announced tolling agreement.”