North American Helium (NAH) has closed a non-brooked common share equity financing of approximately $39m that will be used to construct its second helium purification plant at the Battle Creek field in Southwest Saskatchewan, to fund an active drilling program, and for general corporate purposes.
The news follows a previously secured $24m, reported by gasworld in February.
“This successful financing allows us to advance the company toward significant long-term sustainable helium production and cash flow,” stated Nicholas Snyder, Chairman and Chief Executive Officer at NAH.
“We are in the process of securing multi-year off-take agreements with companies looking for reliable long-term helium supply in North America. This is an exciting time in our history as this facility marks our second successful commercialisation of a new helium field in Canada.”
“The first is the previously announced single- well processing (SWP) unit at our Cypress field in Saskatchewan, which is expected to come online in July of this year. This new facility at Battle Creek represents a step change for NAH, as we transition towards self-sustaining growth for both our organization and the helium industry in Western Canada.”
Marlon McDougall, President and Chief Operating Officer added, “We’ve been planning this for a long time and the purification plant has now been ordered from Air Liquide Advanced Technologies USA LLC.”
“The Government of Saskatchewan continues to be very supportive of our plans and we have obtained all regulatory approvals to proceed with construction. We anticipate plant equipment delivery and construction to take 12 months with commissioning and start-up scheduled for July 2021.”
“This facility will have a throughput capacity of 160 mcf/d of purified helium (20 MMcf/d raw gas), making it the largest helium purification system in Canada. Cash flow from this project will allow us to continue organically converting our significant land base of over 3.7 million acres into a development inventory of growth projects, generating significant potential cash flow streams in the future.”