SASKATOON, SK, Sept. 9, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal Helium" or the "Company") announces the commencement of a strategic repositioning process and a series of leadership changes, with an enhanced focus on maximizing long-term shareholder value.
Royal Helium Ltd. Logo (CNW Group/Royal Helium Ltd.)
Strategic Repositioning Process
In connection with the strategic repositioning process, the Company has recently formed a Technical Committee comprised of Martin Wood, industry expert Brent Ziegler, and board member Karl Kurz. The committee's primary objective will be centered around the completion and operational success of the Steveville project. Part of these efforts will include a renewed approach towards disciplined capital allocation and cost control.
David Young, the Company's Chief Executive Officer, commented, "The inclusion of Karl and Brent on the technical committee marks a pivotal advancement in steering our plant towards a horizon of stable operations and enhanced throughput. Together, their cumulative decades of expertise in spearheading comparable ventures not only fortifies our technical strategy but also ensures a seamless integration of on-site activities, with executive oversight. This strategic alignment is instrumental in driving shareholder value and optimizing our collective interests towards peak operational excellence and shareholder value."
Royal Helium has engaged Eight Capital as financial advisor to assist with the strategic repositioning process and to help lead value maximizing outcomes for all Royal Helium stakeholders. The Company looks forward to providing regular communication to its stakeholders as the strategic repositioning process progresses and milestones are achieved.
Changes in Leadership
Effective immediately, Royal Helium announces the departure of two original Board members, John Pringle, the historical Chairman, and Sylvain Laberge have resigned from their Board roles. The Company is pleased to announce that Martin Wood will be taking over as Chairman of the Board.
"We are excited to have Martin assume the role as Chairman of the Board. In recent weeks, Martin has been intimately involved and has played an instrumental role in crucial corporate realignment initiatives, including his role on the Company's recently formed Technical Committee, focused on elevating helium facility operations", comments David Young.
Martin has more than 30 years' experience in the resource industry as both a financier and operator, having served as CEO for a publicly listed resource development company and more recently in the roles of Chair, Deputy Chair and Senior Independent Non-Executive Director for a number of resource focused public companies.
Martin Wood states, "I am excited to be part of the team leading the repositioning efforts at Royal Helium, with a strategic focus on bringing the Steveville project to full capacity and, in time, developing the other high quality assets and revenue channels that exist within the Royal Helium portfolio."
In addition to the changes in leadership, Royal Helium has concluded an employee headcount overhaul, which it expects to streamline operations and reduce corporate employee-related G&A by more than 40%.
Corporate Update
In connection with its existing off-take agreement, the Company continues to make deliveries of purified helium trailers from its Steveville facility. Royal Helium has an offtake agreement with one of the leading global helium consumers, second only to NASA. The Company is excited to continue to improve its plant capabilities and ramp up helium supply for this esteemed counterparty.
About Royal Helium Ltd.
Royal Helium is a production, infrastructure, and exploration company with a primary focus on the development of helium and associated gases. The Company's extensive footprint includes prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal Helium is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
David Young President and Chief Executive Officer Royal Helium Ltd.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain statements that may be deemed to be "forward-looking statements". All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
