Helium has many important uses in modern society. It is used as a lifting gas in balloons and airships, as a pressurizing and purge gas in various industrial and medical applications, and as a protective gas in welding and other high-temperature industrial processes. It is also used in cryogenics to cool materials to very low temperatures, and in MRI scanners to provide a stable and safe working environment for the machine's powerful magnets.
The demand for helium has been increasing in recent years due to its many uses in modern technology and industry. However, helium is a finite resource and is primarily obtained as a byproduct of natural gas extraction. As a result, the supply of helium can be influenced by factors such as the production of natural gas and the efficiency of helium extraction and purification processes.
This is where Royal Helium comes into play.
The are aiming to become producers, have the land, wells and helium resources to accomplish this. Oh, and they are already constructing the required production facilities.
The last piece of the puzzle is financing. Obtaining financing can be beneficial for a company because it can provide the necessary funds to carry out operations, expand the business, or pursue new opportunities. This can help the company grow and potentially increase profits, which can be beneficial for shareholders and stakeholders.
Additionally, obtaining financing can also demonstrate to investors and others that the company is financially stable and has a plan for the future. Royal Helium has accomplished all of these with the $17.5 million credit facility from a senior Canadian lender that will enables Royal Helium to fund the costs of developing its helium exploration and production operations in Canada, allowing the company to achieve producing status.
Additionally, the fact that the credit facility is being provided by a senior Canadian lender suggests that the lender has confidence in the company's ability to repay the loan and generate revenue from its helium operations.
This may also help to increase confidence in the company among other potential investors and partners.
Sit back and enjoy this SmallCap discovery as Andrew Davidson, CEO & Chairman of Royal Helium discusses this momentous day for Royal helium and shareholders alike as he discusses the impact the financing has on Royal Helium's production goals for 2023.