The Canadian government is putting cash into a publicly traded helium company. But, why?
What’s happening:
- Royal Helium (TSXV: RHC) has received $3M CAD in funding from the government of Canada
- The new funding comes from Prairies Economic Development Canada through their Aerospace Regional Recovery Initiative
By the numbers:
- Royal Helium has 1,000,000 acres of land and leases in Saskatchewan for helium exploration and production
- To date, Royal Helium has begun drilling at 10 of their different wells
Why it matters:
- The new funding comes after the Canadian government previously identified helium as a critical mineral
Going deeper:
- Helium’s primary use historically has been in healthcare, but that has recently been changing due to its need for semiconductor manufacturing, microchip manufacturing and aerospace technologies
- Aerospace companies need helium for both the production of rockets and supporting launches into orbit
- Royal Helium has a long term offtake deal with a North American space launch company to provide them with purified helium supply
The intrigue:
- Royal Helium actively earns carbon credits from their operations at their Steveville helium plant based in Alberta
