North American Helium Inc. (NAH) has closed a non-brokered common share equity financing of approximately $17.8m, which will be used for its exploration and development at its Battle Creek, Cypress and Claydon fields in Saskatchewan, Canada.
NAH’s priority will be the installation of a single-well mobile helium processing unit that will help revenue generation at NAH’s Cypress field through sales of helium on a long-term contract basis.
This project is the first significant step towards moving NAH from an exploration-only focus into cash flow from helium production, according to the Calgary, Canada-based company.
The financing was led by Portal Capital and, as part of the financing, Robert Mitchell, Managing Director of Portal Capital, has joined the NAH board.
Nick Snyder, Chairman and CEO of NAH, said, “Based on the strong initial response to this equity offering, the company is considering raising additional capital in a follow-on tranche on the same terms, with a goal to raising sufficient funds for the completion of its first large-scale helium production facility at Battle Creek in Saskatchewan. I am excited and confident about moving into the next phase of NAH’s growth after prudently building the largest helium-focused land position in North America.”
NAH has also appointed Neil Burrows as Chief Financial Officer (CFO), and he will be responsible for overseeing all operational accounting, corporate development and administration activities.
“Neil has been with the Company as Controller for over two years and proven himself to be a valued contributor as we continue to grow and expand our capabilities,” added Snyder.
NAH has made four new discoveries and acquired rights to explore for and produce helium on a land base of over 3.6 million contiguous acres, primarily in Saskatchewan, Canada and Utah, US. NA aims to start producing and marketing helium in 2020.
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