(Kitco News) – North American Helium today announced that the company recently closed a non-brokered common share equity financing of approximately $127 million.
The company said that proceeds from the financing will be used to, among other things, advance its active exploration and development plan for the 2021/22 drilling season and to bring additional helium production online in 2022.
Helium is an inert gas produced by the decay of uranium and thorium that can be trapped in underground reservoirs proximal to the source. Helium’s low boiling point and non-reactive nature make it vital for the pressurization and purging of liquid fuels in rockets for space exploration and satellite infrastructure.
Helium is also required for semiconductor manufacturing, MRI machines and certain welding applications due to its high heat capacity. A well-known but minor use is as a lifting gas in balloons and airships.
North American Helium said it has been the most active helium driller in Saskatchewan with over 30 wells drilled to date. The company added it owns and operates Canada’s largest helium purification facility, providing reliable, long-term North American supply of this scarce resource to meet growing demand.