- Royal Helium (TSXV:RHC) has announced it has entered into a C$25 million joint venture agreement with Sparrow Hawk Developments to develop the company’s Val Marie helium project in Saskatchewan
- Sparrow Hawk will invest $25 million into the drilling and completion of new wells and the construction of the associated helium purification facility
- Under the terms of the letter of intent, Sparrow Hawk will have a 57.5 per cent non-operating working interest in the wells and a 46 per cent non-operating interest in the processing facility
- Shares of Royal Helium last closed at C$0.15
Royal Helium (TSXV:RHC) has entered into a C$25 million joint venture agreement with Sparrow Hawk Developments to develop the company’s Val Marie helium project in Saskatchewan.
In a news release, the company stated that Sparrow Hawk will invest $25 million into the drilling and completion of new wells and the construction of the associated helium purification facility.
As part of the terms of the letter of intent, Sparrow Hawk will have a 57.5 per cent non-operating working interest in the wells and a 46 per cent non-operating interest in the processing facility.
“This partnership highlights Royal’s commitment toward further inclusion of First Nations groups in the resource development activities and the economic growth in the province. This historical partnership with Sparrow Hawk to advance the economic development in the Treaty 4 Territory is an important first step toward these objectives,” Andrew Davidson, CEO of Royal Helium, said in a statement.
Terms of the agreement also include Sparrow Hawk supporting Royal Helium’s economic reconciliation strategy, which includes:
- Working together to advance economic reconciliation in Treaty 4 territory and seek to create employment opportunities for Peepeekisis Cree Nation and First Nations people in Saskatchewan’s helium sector.
- Partnering on future helium opportunities in Saskatchewan as they materialize.
Sparrow Hawk engaging First Nation’s training organizations to provide Indigenous culture training and education opportunities to Royal and its subcontractors.
Sparrow Hawk playing a role in engaging other First Nation organizations and partners to work together on economic opportunities that may arise as a result of this partnership
The Val Marie project includes a 32,000-acre 21-year lease land package that represents 3 per cent of the company’s current helium permit and lease lands across Saskatchewan and Alberta.
Royal Helium first drilled its initial well at the project in August 2022 with some of its highest helium showings to date from drill bit gas detection equipment from multiple stacked zones.
Royal Helium is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases.
Shares of Royal Helium last closed at C$0.15.
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